On August 9th the CHIPS and Science Act was signed into law introducing significant government incentives for semiconductor manufacturers in the U.S.
Here’s a breakdown of the CHIPS Act by the numbers:
- $52.7 billion dollars in total for semiconductor research and development
- $39 billion in manufacturing incentives
- $2 billion for the legacy chips used in automobiles and defense systems
- $13.2 billion in R&D and workforce development
- $500 million to provide for international information communications technology security and semiconductor supply chain activities.
This amounts to the largest US semiconductor bill ever signed into law.
Since its inception only a couple of short months ago several large manufacturers have already announced plans for investments in domestic manufacturing plants including:
- $100 Million dollar investment by Micron for a new megafab manufacturing plant in New York
- $200 Million dollar investment by Samsung in Texas
- Qualcomm is set to spend $4.2 billion in chips purchases from New York manufacturer GlobalFoundries.
There are still more many more investments expected from companies such as Intel which stands to benefit from the CHIPs Act incentives. As funds continue to be distributed over the next 5 years the hope is that the U.S. semiconductor market share will increase as well.
