$35 million given for CHIPS Act, likely delay for fab builds

What you need to know

  • The CHIPS Act of 2022 designates $52.7 billion in government funding to help companies invest in U.S. Chip Manufacturing.
  • The U.S. only manufactures 12% of the world’s chips, down from 40% in 1990. The goal of the CHIPS Act is to push U.S. chip manufacturing to 20%.
  • Due to long regulatory and environmental concerns, there is likely to be a large delay for other companies like Intel and TSMC.

“The CHIPS and Science Act provides $52.7 billion for American semiconductor research, development, manufacturing, and workforce development,” according to Whitehouse.gov. However, it looks like the quagmire of government, environmental regulation, and overall inefficiency are causing what has been deemed a national security matter of high importance to be delayed. 

We do not want to be in a position where critical national security needs are dependent on faulty foreign supply chains. We do not want to be in a position where another country can cut us off in a moment of crisis.

Jake Sullivan – WH security advisor

Why is the CHIPS act important?

The United States used to produce 40% of the world’s chips in the 90’s. Now that production is down to a measly 12% globally. The CHIPS Act is a $52 billion investment from the government to aid companies in building out U.S.-based chip fabrication plants. I live in Arizona, where there is already an Intel plant, and TSMC is building a new chip manufacturing site, which is on the news quite often as it is likely to bring a lot of new highly skilled and high-salary positions to the state.