In a recent Area Development article examining the CHIPS Act’s impact, Hunt Rose shared his perspective on the legislation’s role in revitalizing American manufacturing:
The CHIPS and Science Act is cited regularly as a tailwind for a boom in U.S. manufacturing. This article is a concise summary of statistics and examples of companies already benefiting.
Percentage of world chips manufactured in the United States –
• 1990 = 37%
• 2020 = 12%CHIPS and Science Act aims at boosting the nations competitiveness in the market for semiconductors.
• $52.7 billion available to fund semiconductor manufacturing from 2022 to 2026.
• $24 billion worth of tax credits for chip production
• $3 billion for programs aimed at leading-edge technologyGoal = raise U.S. capacity in chip production to 20% of the global market by 2030. Which is expected to bring back some of the 100,000 jobs lost since 2001.
Employment for semiconductor and related device manufacturing from 2001 to 2023 declined in most states.
Source: Chmura Economics and Analytics
Employment for semiconductor and related device manufacturing from 2001 to 2023 declined in most states. Source: Chmura Economics and AnalyticsFirms have already benefitted from the CHIPS and Science Act:
• Intel – $8.5 billion to help fund $100 billion investment across 4 projects (Chadler, AZ; Rio Rancho, NM; New Albany, OH; Hillsboro, OR)
• Samsung – $6.5 billion expansion in Taylor, TX
• Taiwan Semiconductor Manufacturing Company – $6.6 billion in direct funding to enhance production capacity
• GlobalFoundries – $1.5 billion to fund projects in Malta, NY and Burlington, VT
• Microchip Technology Inc. received $162 million
• BAE Systems received $35 million to quadruple the production Nashua, NH
Note: most projects so far are the expansion of existing
fabrication plants.