The CHIPS and Science Act of 2022 represents a pivotal investment in America’s future, reinforcing the country’s leadership in semiconductor manufacturing, technological innovation, and economic resilience. As part of the Biden-Harris Administration’s commitment to revitalizing domestic manufacturing and strengthening supply chains, this landmark legislation ensures the United States remains at the forefront of global competition in critical industries such as artificial intelligence, quantum computing, and clean energy.
Since taking office, the Biden administration has implemented an industrial strategy that has led to a historic resurgence in American manufacturing, adding 642,000 manufacturing jobs since 2021. With the CHIPS and Science Act, the United States is positioned to further accelerate economic growth, create high-quality jobs, and reduce dependence on foreign semiconductor production.
Historic Investments Driving U.S. Semiconductor Growth
The passage of the CHIPS and Science Act has already catalyzed substantial private sector investments in domestic semiconductor manufacturing, with nearly $50 billion in new commitments announced this week alone. These include:
- Micron’s $40 billion investment in memory chip manufacturing, a move that is set to increase U.S. market share of memory chip production from under 2% to nearly 10% over the next decade. This initiative will generate up to 40,000 new jobs in both construction and manufacturing.
- Qualcomm and GlobalFoundries’ $4.2 billion partnership, which expands chip production at GlobalFoundries’ upstate New York facility and will increase U.S. semiconductor manufacturing by up to 50% in the next five years.
These investments, driven by the CHIPS and Science Act, will unlock hundreds of billions in additional private sector funding, reinforcing the nation’s technological and economic security.
Rebuilding America’s Leadership in Semiconductor Manufacturing
Despite pioneering semiconductor technology, the United States currently produces just 10% of the global semiconductor supply and none of the most advanced chips. The CHIPS and Science Act directly addresses this challenge by allocating $52.7 billion for semiconductor research, development, and production. Key provisions include:
- $39 billion in manufacturing incentives to support semiconductor production, including $2 billion dedicated to legacy chips essential for the automotive and defense sectors.
- $13.2 billion for research, development, and workforce training to advance U.S. leadership in microelectronics.
- $500 million for securing international information communications technology and semiconductor supply chains.
- A 25% investment tax credit for semiconductor manufacturing, encouraging additional private sector investment and innovation.
In addition to bolstering production, the Act includes strong protections to prevent taxpayer funds from being misused. It prohibits CHIPS funding recipients from constructing facilities in China and other countries of concern, while also restricting stock buybacks and shareholder dividends.
Advancing U.S. Leadership in Science and Innovation
The CHIPS and Science Act ensures that America remains a global leader in scientific and technological advancement. Recognizing that federal investment in research and development (R&D) has declined from 2% of GDP in the 1960s to less than 1% today, this legislation aims to reverse this trend by making substantial investments in next-generation technologies, including:
- Establishing a technology and innovation directorate within the National Science Foundation (NSF) to drive progress in semiconductors, quantum computing, artificial intelligence, and biotechnology.
- Expanding fundamental and use-inspired research initiatives at the Department of Energy Office of Science and the National Institute of Standards and Technology (NIST) to sustain American leadership in engineering and scientific discovery.
- $1.5 billion for wireless technology advancements, strengthening U.S. competitiveness in open and interoperable radio access networks.
Creating Regional Economic Hubs and STEM Opportunities
To ensure economic benefits are widespread, the CHIPS and Science Act authorizes $10 billion for regional technology and innovation hubs that will:
- Encourage collaboration between state and local governments, higher education institutions, businesses, and labor organizations.
- Foster job creation and economic development in high-growth sectors such as artificial intelligence, clean energy, and advanced manufacturing.
- Launch a $1 billion RECOMPETE pilot program through the Economic Development Administration (EDA) to revitalize economically distressed regions.
Expanding Access to STEM Education and Workforce Development
The CHIPS and Science Act prioritizes equitable access to science, technology, engineering, and mathematics (STEM) education, ensuring that all Americans—regardless of background—can participate in the jobs of the future. Key initiatives include:
- Expanding STEM education and training programs from K-12 through graduate education, with a focus on increasing access for historically underserved communities.
- Strengthening funding for Historically Black Colleges and Universities (HBCUs), minority-serving institutions, and research universities to broaden participation in STEM innovation.
- Establishing mechanisms to combat sexual and gender-based harassment in the sciences, reducing barriers to participation for underrepresented groups.
A Future Built in America
The CHIPS and Science Act represents a strategic investment in American innovation, economic growth, and national security. By revitalizing semiconductor manufacturing, fostering scientific advancements, and expanding workforce development, this legislation ensures that the technologies of tomorrow will be designed, developed, and manufactured in the United States. As the nation moves forward, the CHIPS and Science Act will continue to drive progress, reinforcing the country’s position as a global leader in technology and economic prosperity.