The
CHIPS and Science Act, signed into law in August 2022, is a U.S. federal law aimed at boosting domestic semiconductor manufacturing, research, and development. It provides
$52.7 billion in funding to strengthen the U.S. semiconductor industry, reduce reliance on foreign supply chains, and enhance national security.
Key components:
- $39 billion in manufacturing incentives, including subsidies and tax credits for chip production.
- $13.7 billion for R&D, workforce training, and technology hubs.
- A 25% investment tax credit for semiconductor manufacturing equipment and facilities.
- Measures to prevent funding recipients from expanding advanced semiconductor production in China for 10 years.
The act is intended to revitalize U.S. chip production, support economic growth, and ensure technological competitiveness against global rivals, particularly China.