The CHIPS Act is one of the most important government initiatives to boost semiconductor production in the United States. Passed in 2022, it was designed to bring chip manufacturing back to the U.S. and reduce reliance on foreign suppliers. This law provides funding and tax credits to help companies build and expand semiconductor factories. It also invests in research and development, workforce training, and supply chain security.
1. The CHIPS Act allocates $52.7 billion in federal funding to boost the U.S. semiconductor industry
The CHIPS Act provides a massive $52.7 billion investment into the semiconductor sector. This funding is meant to encourage companies to build manufacturing plants in the U.S. and strengthen the domestic supply chain.
If you are a business owner or investor in the semiconductor space, this funding presents a golden opportunity. Companies that apply for these funds can receive direct financial support to expand their operations. Startups focusing on chip innovation should also look into available grants and R&D funding.
2. $39 billion is designated for semiconductor manufacturing incentives
A significant portion of the CHIPS Act funding—$39 billion—is reserved specifically for manufacturing incentives. This means that companies willing to build or expand semiconductor plants in the U.S. can receive government support.
If you’re in the industry, now is the time to explore partnerships with larger firms or apply for funding yourself. States are also offering incentives to attract semiconductor businesses, so checking state-specific programs could maximize your benefits.
3. $13.2 billion is set aside for R&D and workforce development
The U.S. semiconductor industry needs skilled workers and cutting-edge research to stay competitive. To address this, the CHIPS Act has allocated $13.2 billion for research and workforce training.
Universities, research institutions, and tech companies can tap into these funds to develop new chip technologies and train the next generation of engineers. If you run a tech firm, consider forming partnerships with universities to secure R&D funding and access top talent.
4. The Act provides a 25% investment tax credit for semiconductor manufacturing
Beyond direct funding, the CHIPS Act offers a 25% investment tax credit for semiconductor manufacturing. This means companies can recover a quarter of their investment in new plants through tax savings.
If your company is planning to build or expand a semiconductor facility, this tax credit can significantly reduce costs. Consulting with a tax expert can help you maximize these benefits.
5. The U.S. share of global semiconductor manufacturing declined from 37% in 1990 to 12% in 2022
The U.S. once dominated semiconductor manufacturing, but today, most chips are made in Asia. The CHIPS Act aims to reverse this decline and bring production back home.
For businesses, this shift presents opportunities to fill gaps in domestic production. Suppliers of raw materials, chip equipment, and semiconductor packaging should prepare for increased demand as more chip plants open in the U.S.
6. Taiwan and South Korea currently produce over 80% of the world’s advanced semiconductors
Most of the world’s most advanced chips come from Taiwan and South Korea. This over-reliance on foreign manufacturers puts the U.S. at risk in case of supply chain disruptions.
If you’re in the semiconductor industry, now is the time to explore local partnerships and suppliers. Companies that can provide key materials or manufacturing expertise in the U.S. will have a competitive edge in the coming years.
7. The Act aims to create tens of thousands of high-tech manufacturing jobs in the U.S.
The CHIPS Act is expected to create tens of thousands of new jobs in semiconductor manufacturing. These jobs range from engineers and technicians to factory workers.
If you’re looking for career opportunities, now is the time to upskill in semiconductor-related fields. Businesses should also focus on attracting top talent by offering competitive salaries and training programs.
8. Intel announced a $100 billion investment in U.S. semiconductor manufacturing after the Act’s passage
Intel is one of the biggest beneficiaries of the CHIPS Act, committing $100 billion to build new chip plants in the U.S.
For suppliers and contractors, this means increased demand for construction, materials, and semiconductor equipment. If you operate in this space, now is the time to position your business as a key supplier for Intel’s expansion.
9. TSMC committed over $40 billion to build chip plants in Arizona
Taiwanese semiconductor giant TSMC is investing over $40 billion in Arizona to build advanced chip facilities.
This investment will boost the local economy and create thousands of jobs. If you’re in Arizona or the surrounding region, look for opportunities in construction, manufacturing, and semiconductor supply chain logistics.
10. Samsung pledged $17 billion for a semiconductor facility in Texas
Samsung is investing $17 billion in a semiconductor plant in Texas, adding to the growing number of U.S.-based chip factories.
If you’re in Texas, this is a great time to explore job opportunities or business partnerships in the semiconductor industry. The demand for skilled workers and suppliers in the region is expected to soar.
11. Micron is investing $100 billion in domestic chip manufacturing over the next 20 years
Micron’s long-term investment of $100 billion will significantly boost U.S. chip production.
For businesses and investors, this signals a stable and growing industry. Companies that provide semiconductor equipment, materials, or research services should align their strategies with Micron’s expansion plans.
12. The Act aims to reduce U.S. reliance on Chinese semiconductor imports, which account for about 50% of U.S. chip consumption
The U.S. imports about half of its semiconductors from China. The CHIPS Act aims to reduce this dependence and build a more secure supply chain.
For U.S. companies, this means new business opportunities in domestic chip production and supply chain resilience. Businesses that develop alternative supply sources will be well-positioned for long-term growth.
13. U.S. semiconductor exports increased by 17% in 2023 due to CHIPS Act incentives
Since the CHIPS Act was passed, U.S. semiconductor exports have surged by 17%.
For businesses involved in semiconductor exports, this growth presents a chance to expand international market reach. Companies should explore new trade partnerships and leverage government support to boost global sales.
14. Over $200 billion in private investments have been announced in response to the Act
Private sector investment in the semiconductor industry has exceeded $200 billion since the CHIPS Act was introduced.
If you’re an investor, this is a sign that the industry is set for long-term growth. Investing in semiconductor stocks, startups, or infrastructure could yield strong returns.
15. More than 50 new semiconductor manufacturing projects have been announced nationwide
Since the CHIPS Act was passed, over 50 new semiconductor manufacturing projects have been launched across the country. This includes everything from large-scale fabrication plants (fabs) to research and development centers.
For businesses, this growth presents countless opportunities. Construction companies, suppliers of chip-making equipment, and logistics providers will all be in high demand.
If you’re in these sectors, now is the time to expand your capabilities and build relationships with semiconductor firms.
If you’re a local government official or economic developer, you should work to attract semiconductor projects to your area. Many companies are looking for incentives such as tax breaks, infrastructure improvements, and skilled labor pools.
Creating a business-friendly environment can help your region benefit from this semiconductor boom.
16. The CHIPS Act is expected to create 40,000+ direct jobs in the semiconductor sector
Semiconductor manufacturing requires a highly skilled workforce, and the CHIPS Act is projected to create over 40,000 direct jobs in the industry. These jobs include engineers, technicians, and factory workers involved in the design, production, and testing of chips.
If you’re looking for a career change, this is a great time to enter the semiconductor industry. Many universities and technical schools are expanding their programs in semiconductor manufacturing and engineering.
Businesses should also focus on workforce training to ensure they have the talent needed to support expansion.
17. The semiconductor workforce demand in the U.S. is projected to grow by 35% by 2030
By 2030, the demand for skilled semiconductor workers is expected to increase by 35%. This growth will create a significant challenge in hiring and retaining talent.
Companies need to invest in workforce development today to avoid labor shortages in the future. Offering competitive salaries, training programs, and clear career advancement paths will be crucial in attracting top talent.
Governments and educational institutions must also work together to ensure training programs align with industry needs.
For individuals, pursuing careers in chip design, fabrication, and related fields will provide long-term job security. Those with expertise in artificial intelligence, quantum computing, and advanced manufacturing will be particularly in demand.
18. The Act allocates $500 million per year for international semiconductor supply chain cooperation
A critical aspect of the CHIPS Act is its focus on strengthening international supply chains. The law provides $500 million per year to enhance cooperation with allied nations.
For businesses, this presents opportunities to collaborate with global partners in semiconductor research, development, and production. Companies should explore partnerships with European, Japanese, and South Korean firms to leverage shared expertise and resources.
Policymakers should also focus on building strong trade agreements to ensure a stable flow of semiconductor materials and components. With global demand for chips rising, having a resilient supply chain will be key to long-term success.
19. The National Semiconductor Technology Center (NSTC) was created to drive U.S. chip innovation
To maintain leadership in chip technology, the CHIPS Act established the National Semiconductor Technology Center (NSTC). This organization is focused on advancing research and development in semiconductor innovation.
Startups and research institutions should engage with NSTC to access funding, collaborate on breakthrough technologies, and bring new products to market. Businesses should also keep an eye on NSTC developments to stay ahead of emerging trends in chip design and fabrication.
For students and researchers, NSTC provides an opportunity to work on cutting-edge semiconductor projects and gain valuable experience in the field.
20. R&D spending in the U.S. semiconductor industry is projected to increase by 25% by 2025
One of the biggest impacts of the CHIPS Act is the expected increase in semiconductor research and development spending. By 2025, R&D spending in the U.S. semiconductor industry is projected to rise by 25%.
This boost in funding will accelerate the development of next-generation chips, including those used in artificial intelligence, 5G, and quantum computing. If you’re a business involved in semiconductor research, now is the time to apply for grants and seek partnerships with larger companies.
Universities and startups should also explore funding opportunities to develop innovative semiconductor technologies. The companies that invest in R&D today will be the industry leaders of tomorrow.
21. U.S. semiconductor capital expenditures surged 40% year-over-year after the Act’s passage
Investment in semiconductor manufacturing has skyrocketed since the CHIPS Act was passed. In the year following the law’s enactment, capital expenditures in the U.S. semiconductor industry jumped by 40%.
This surge in investment means a rapidly expanding market for suppliers, construction firms, and service providers. Companies in industries such as cleanroom manufacturing, industrial automation, and semiconductor testing should prepare for increased demand.
Investors should also take note—semiconductor stocks are poised for growth, and companies expanding their U.S. presence may offer strong long-term returns.
22. The Act aims to triple U.S. domestic production of leading-edge semiconductors by 2030
Currently, the U.S. produces only a small percentage of the world’s most advanced semiconductors. The CHIPS Act aims to change that by tripling domestic production of leading-edge chips by 2030.
For businesses in the semiconductor supply chain, this means long-term growth opportunities. Companies that provide raw materials, precision tools, and semiconductor equipment should prepare for an increased workload.
For policymakers, achieving this goal will require continued investment in infrastructure, workforce training, and research facilities. Ensuring that U.S. semiconductor fabs have the resources they need will be key to success.
23. The U.S. is targeting 20% of global semiconductor production by 2030, up from 12%
The CHIPS Act is part of a broader strategy to increase the U.S. share of global semiconductor manufacturing. By 2030, the goal is to raise U.S. production to 20% of the world’s total, up from 12% today.
Businesses that want to capitalize on this growth should start positioning themselves now. Semiconductor firms should explore expansion plans, while suppliers should secure long-term contracts with chipmakers.
Investors should also monitor industry trends and consider semiconductor-related stocks and ventures.
24. Over 60% of CHIPS Act funding is expected to be spent by 2026
The U.S. government is moving quickly to distribute CHIPS Act funds, with more than 60% expected to be allocated by 2026.
For businesses, this means acting fast to secure funding and incentives. Companies that delay their applications may miss out on key financial support. Working with experts who understand the application process can help businesses maximize their benefits.
25. The semiconductor supply chain is expected to shorten, reducing chip lead times by 30%
One major advantage of reshoring semiconductor production is a shorter supply chain. The CHIPS Act is expected to reduce chip lead times by 30%, making semiconductor production more efficient and responsive to demand.
For manufacturers, this means better inventory management and fewer disruptions. Companies that rely on semiconductors—such as automakers and electronics manufacturers—should see fewer delays and price fluctuations.
26. The Act includes $2 billion for legacy chips critical to the automotive and defense industries
Not all chips need to be cutting-edge. Many industries, including automotive and defense, rely on older semiconductor technologies. The CHIPS Act includes $2 billion to support legacy chip production, ensuring that these sectors have a stable supply.
Businesses that produce or use legacy chips should explore available funding opportunities. Ensuring a steady domestic supply will help avoid future shortages.
27. Semiconductor-related university funding increased by 40% to support workforce development
To address the semiconductor talent gap, the CHIPS Act has boosted university funding by 40%. This increase is helping expand engineering programs and research initiatives.
Students interested in semiconductors should take advantage of new scholarships, internships, and research opportunities. Businesses should also build relationships with universities to secure top talent and support industry-relevant curriculum development.
28. Advanced packaging capabilities in the U.S. are expected to grow 4x by 2030
Advanced packaging is becoming a critical part of semiconductor production. The CHIPS Act is expected to increase U.S. packaging capabilities by 4x by 2030.
Companies involved in chip packaging should prepare for higher demand and invest in new technologies. Those in adjacent industries, such as materials science and industrial automation, should also explore new opportunities in semiconductor packaging.
29. The U.S. semiconductor industry contributes over $250 billion annually to GDP
The semiconductor industry is a key driver of the U.S. economy, contributing over $250 billion annually to the nation’s GDP. This figure is expected to rise significantly as the CHIPS Act accelerates domestic production, R&D, and supply chain expansion.
For businesses, this means a growing market with increasing opportunities. Semiconductor manufacturers, suppliers, and service providers should prepare for sustained growth and explore strategic partnerships to scale operations.
Local governments should also recognize the economic benefits of attracting semiconductor investments. Offering tax incentives, infrastructure support, and workforce development programs can help regions benefit from the booming semiconductor sector.
30. The CHIPS Act is expected to reduce U.S. semiconductor trade deficits by $50 billion annually
One of the biggest economic benefits of the CHIPS Act is its potential to reduce the U.S. semiconductor trade deficit by $50 billion per year. By increasing domestic production, the U.S. will rely less on imported chips, strengthening economic independence and national security.
For businesses that import semiconductors, this shift presents an opportunity to switch to domestic suppliers. Establishing relationships with U.S.-based chip manufacturers can help companies secure more stable supply chains, reduce costs, and avoid geopolitical risks.
Policymakers should continue working on trade agreements that support U.S. semiconductor exports. By expanding international market access for American-made chips, the U.S. can further reduce its trade deficit while strengthening its position as a global semiconductor leader.
wrapping it up
The CHIPS Act is a once-in-a-generation investment that is transforming the U.S. semiconductor industry. By injecting billions of dollars into manufacturing, research, and workforce development, it is reshaping how chips are made, who makes them, and where they are produced.
