Image Credit: William Potter/Shutterstock.com
Why Was the CHIPS and Science Act Published? The CHIPS and Science Act was introduced in response to the decline in domestic semiconductor production and the vulnerability of the global supply chain. What Are the Main Goals of the CHIPS and Science Act? The first goal of the CHIPS and Science Act is to reduce the risk of disruptions in the semiconductor supply chain from foreign shocks, particularly in East Asia. It aims to diversify manufacturing locations, enhance supply chain resilience, and address potential bottlenecks in semiconductor production.
The U.S. Act provides $52.7 billion in new funding, while the E.U. Act relies on existing programs and member state contributions. The U.S. Act focuses on first-of-a-kind facilities and workforce development, while the E.U. Act prioritizes leading-edge manufacturing and innovation. As a result, chip manufacturing giants such as Intel and Wolfspeed are investing $20 billion and $5 billion, respectively, to build semiconductor fabrication and power semiconductor plants in Ohio and New York. In addition, Qualcomm and GlobalFoundries have joined forces, contributing $4.2 billion for chip manufacturing in New York, while Micron's investment of $40 billion will create 40,000 new jobs in memory chip production.
The legislation's provision of subsidies for domestic semiconductor manufacturing and its efforts to address challenges in the global market are seen as positive steps toward strengthening the semiconductor industry in the United States. Dahlgren, D. . Chip Act versus Chip Act. [Online]. Evertiq. Available at: https://evertiq.com/news/53700