The United States is prioritising the domestic production of semiconductors to reduce reliance on foreign suppliers. This initiative aims to address vulnerabilities exposed by the global chip shortage and bolster national security. The US CHIPS and Science Act allocates $52.7 billion towards revitalising American semiconductor manufacturing, research and development, and supply chain resilience.
Of the $52.7 billion, $39 billion has been earmarked for manufacturing incentives, including the construction of fabrication plants, testing, advanced packaging and assembly. A further $11 billion will support semiconductor research via agencies like NIST. The Act also provides a 25% investment tax credit for semiconductor manufacturing equipment and facilities.
This legislation is reshaping the American manufacturing landscape, with semiconductor construction surging from 3% to 58% of all US manufacturing investment. Companies like Intel, TSMC, Micron and Samsung are expanding their US operations, spurred by the Act's incentives. The US aims to safeguard semiconductor sovereignty for its own national security and its broader alliance network.
