CHIPS Act

Extracted Attributes

• Divisions

  CHIPS Act of 2022, Research and Development, Competition, and Innovation Act, Supreme Court Security Funding Act of 2022

• Restrictions

  Prohibits funding recipients from expanding semiconductor manufacturing in China and countries posing a national security threat (with exceptions for legacy semiconductors)

• Official Name

  CHIPS and Science Act

• Primary Purpose

  Bolster domestic semiconductor research and manufacturing, enhance American supply chain resilience, counter China's influence, advance science and technology

• Date Signed into Law

  2022-08-09

• Investment Tax Credit

  25% for manufacturing equipment

• Total Authorized Funding

  Approximately $280 billion

• Chip Manufacturing Subsidies

  $39 billion

• Semiconductor Industry Allocation

  $52.7 billion

• Projected Investments (as of March 2024)

  $160-$200 billion

• Broader Public Sector Research Investment

  $174 billion

• Projected Job Creation (as of March 2024)

  25,000-45,000 jobs

• Estimated Potential Projects (as of March 2024)

  25-50

• Semiconductor Research and Workforce Development

  $13 billion

Timeline

• The CHIPS and Science Act is signed into law by President Joe Biden. (Source: Summary)

  2022-08-09

• Analysts estimate the act has incentivized between 25 and 50 potential projects, projecting $160–200 billion in investments and 25,000–45,000 new jobs. (Source: Summary)

  2024-03

• NSF awards $42.4M in new grants to support the future of semiconductors, funded by the CHIPS & Science Act. (Source: Web Search Results)

  2024-08-29

• U.S. National Science Foundation and Department of Commerce announce a new $30M funding opportunity, funded by the CHIPS & Science Act, to prepare talent for semiconductor jobs nationwide. (Source: Web Search Results)

  2024-09-16

CHIPS and Science Act

The CHIPS and Science Act is a U.S. federal statute enacted by the 117th United States Congress and signed into law by President Joe Biden on August 9, 2022. The act authorizes roughly $280 billion in new funding to boost domestic research and manufacturing of semiconductors in the United States, for which it appropriates $52.7 billion. The act includes $39 billion in subsidies for chip manufacturing on U.S. soil along with 25% investment tax credits for costs of manufacturing equipment, and $13 billion for semiconductor research and workforce training, with the dual aim of strengthening American supply chain resilience and countering China.: 1  It also invests $174 billion in the overall ecosystem of public sector research in science and technology, advancing human spaceflight, quantum computing, materials science, biotechnology, experimental physics, research security, social and ethical considerations, workforce development and diversity, equity, and inclusion efforts at NASA, NSF, DOE, EDA, and NIST. The act does not have an official short title as a whole but is divided into three divisions with their own short titles: Division A is the CHIPS Act of 2022 (where CHIPS stands for the former "Creating Helpful Incentives to Produce Semiconductors" for America Act"); Division B is the Research and Development, Competition, and Innovation Act; and Division C is the Supreme Court Security Funding Act of 2022. By March 2024, analysts estimated that the act incentivized between 25 and 50 separate potential projects, with total projected investments of $160–200 billion and 25,000–45,000 new jobs. However, these projects are faced with delays in receiving grants due to bureaucratic hurdles, shortages of skilled workers, and congressional funding deals that have limited or cut research provisions of the Act by tens of billions of dollars.

Web Search Results

• CHIPS and Science Act - Wikipedia

  For semiconductor and telecommunications purposes, the CHIPS Act designates roughly $106 billion. The CHIPS Act includes $39 billion in tax benefits, loan guarantees and grants, administered by the DOC to encourage American companies to build new chip manufacturing plants in the U.S. Additionally, $11 billion would go toward advanced semiconductor research and development, separable into $8.5 billion of that total going to the National Institute for Standards and Technology, $500 million to [...] According to McKinsey, "The CHIPS Act allocates $2 billion to the Department of Defense to fund microelectronics research, fabrication, and workforce training. An additional $500 million goes to the Department of State to coordinate with foreign-government partners on semiconductor supply chain security. And $1.5 billion funds the USA Telecommunications Act of 2020, which aims to enhance competitiveness of software and hardware supply chains of open RAN 5G networks." (The open RAN research [...] ## History The CHIPS and Science Act combines two bipartisan bills: the Endless Frontier Act, designed to boost investment in domestic high-tech research, and the CHIPS for America Act, designed to bring semiconductor manufacturing back to the U.S. The act is aimed at competing with China.

• CHIPS and Science | NSF

  On August 9, 2022, President Joe Biden signed into law the "CHIPS and Science Act of 2022." The act authorizes historic investments in curiosity-driven, exploratory research and use-inspired, translational research. These investments will advance the most innovative ideas across all areas of science and engineering— accelerating their translation to solutions for today's challenges and tomorrow's — at speed and scale. [...] Establishes Technology, Innovation & Partnerships ------------------------------------------------- Learn more ---------- CHIPS and Science formally codifies into law Technology, Innovation and Partnerships") — NSF's first new directorate in more than 30 years— and authorizes $20 billion for its initiatives over FY 2023–2027. The act establishes 10 key technology areas critical to the nation's economic and national security. [...] ### U.S. National Science Foundation and Department of Commerce announce a new $30M funding opportunity, funded by the CHIPS & Science Act, to prepare talent for semiconductor jobs nationwide _September 16, 2024_ ### NSF awards $42.4M in new grants to support the future of semiconductors _August 29, 2024_ ### NSF invests $18.6M in emerging research institutions to grow their networks and their capacity to participate in regional innovation ecosystems

• The CHIPS Act: How U.S. Microchip Factories Could Reshape the ...

  A summary of global news developments with CFR analysis delivered to your inbox each morning. Weekdays. ### Think Global Health A curation of original analyses, data visualizations, and commentaries, examining the debates and efforts to improve health worldwide. Weekly. The CHIPS Act is part of a larger government effort to create jobs, revitalize domestic supply chains, and increase the U.S. production of critical technologies. [...] In 2022, President Joe Biden signed into law the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act. The legislation directs hundreds of billions of dollars toward supercharging domestic production of advanced technologies such as semiconductors—also known as microchips or chips. Since its passage, private firms have announced nearly $400 billion dollars in additional investments in chips and other electronics. Arizona and several other states are poised to become [...] Council of Councils Think Global Health Online Store ## In Brief # The CHIPS Act: How U.S. Microchip Factories Could Reshape the Economy By Diana Roy October 8, 2024 11:42 am (EST) The CHIPS and Science Act seeks to revitalize the U.S. semiconductor industry amid growing fears of a China-Taiwan conflict. Where is the money going, and how is the effort playing out?

• The CHIPS Act already puts America first. Scrapping it would poison ...

  and technological innovation. The CHIPS Act induced many of the world’s leading semiconductor companies to produce chips in the US by offering a generous advanced manufacturing tax credit of 25 percent to facilities that make semiconductors or equipment that makes chips (see figure below). Essentially any firm investing in making either is eligible for the tax credit, which has no cap on the amount. The tax credit will end up being by far the largest subsidy in the CHIPS Act, although most [...] Unlike a tariff-based approach, the CHIPS Act has spurred investment without raising costs that would reduce the competitiveness of the far more numerous semiconductor–using industries like AI companies locked in a high stakes race with China. [...] manufacturing capabilities closer to the cutting edge and improving US national security. Even after stripping out post-2019 inflation, the CHIPS Act spurred an estimated over $110 billion in 2019 dollars of investment in the US (see figure below), more than the entire amount of real investment in facilities to manufacture electronics and computers from 2007 until 2020, when the precursor to the CHIPS Act was approved. The CHIPS Act passed Congress with bipartisan support, and it grew out of

• The CHIPS Act: What it means for the semiconductor ecosystem - PwC

  These subsidies could offer a cushion for semiconductor companies to upskill and diversify their workforce. Image 12 ### Restrictions on overseas manufacturing The CHIPS Act prohibits funding recipients from expanding semiconductor manufacturing in China and countries defined by US law as posing a national security threat to the United States. These restrictions would apply to any new facility, unless the facility produces legacy semiconductors predominately for that country’s market. [...] Now that the CHIPS and Science Act of 2022 is law, semiconductor companies are evaluating how — and whether — to pursue a piece of the $52.7 billion in federal subsidies allocated to support chip manufacturing. [...] The funding, however, comes with a catch: new geographical manufacturing restrictions. Image 11: Summary To make the most of the CHIPS Act, semiconductor companies should reassess global strategy, while also planning for grant pursuit, digital transformation, capital project management and financial planning. Funding recipients are prohibited from expanding semiconductor manufacturing in China or any countries that pose a threat to US national security.