The CHIPS Act: Overview and Benefits to Ease Your Supply Constraints

The US share of semiconductor production has crumbled from 37% to 12%, giving the US government a push to act and finally pass the long-awaited $280 billion CHIPS Act. In a bid to reinvigorate domestic semiconductor manufacturing, design, and research to promote economic and national security, in hopes that the newly passed act will help level the playing field with other chipmaking countries.

With nearly $50 billion in government subsidies and investment tax credits, leading semiconductor manufacturers have announced their plans to increase domestic production. However, with the construction of new fabs taking years, will this aid the ongoing semiconductor shortage?