View source for CHIPS and Science Act

{{Short description|United States legislation promoting the semiconductor industry and public basic research}}
{{Redirect|CHIPS Act||Chips Act}}
{{Use mdy dates|date=January 2023}}
{{Infobox U.S. legislation
| shorttitle = CHIPS and Science Act
| longtitle = Making appropriations for Legislative Branch for the fiscal year ending September 30, 2022, and for other purposes
| enacted by = 117th
| effective date = August 9, 2022
| leghisturl = https://www.congress.gov/bill/117th-congress/house-bill/4346
| introducedin = House of Representatives
| introducedbill = {{USBill|117|H.R.|4346}} the '''Supreme Court Security Funding Act of 2022'''
| introducedby = [[Tim Ryan (Ohio politician)|Tim Ryan]] ([[Democratic Party (United States)|D]]–[[Ohio's 13th congressional district|OH]])
| introduceddate = July 1, 2021
| committees = [[House Appropriations Committee|House Appropriations]]
| passedbody1 = House
| passeddate1 = July 28, 2021
| passedvote1 = [https://clerk.house.gov/Votes/2021239 215–207]
| passedbody2 = Senate
| passedas2 = '''Chips and Science Act'''
| passeddate2 = July 27, 2022
| passedvote2 = [https://www.senate.gov/legislative/LIS/roll_call_votes/vote1172/vote_117_2_00271.htm 64–33]
| passedbody3 = 
| passeddate3 = 
| passedvote3 = 
| agreedbody3 = House
| agreeddate3 = July 28, 2022
| agreedvote3 = [https://clerk.house.gov/Votes/2022404 243–187–1]
| agreedbody4 = 
| agreeddate4 = 
| agreedvote4 = 
| signedpresident = [[Joe Biden]]
| signeddate = August 9, 2022
| nicknames = CHIPS-Plus
| cite public law = {{uspl|117|167}}
| cite statutes at large = {{USStat|136|1366}}
| othershorttitles = {{ubl|CHIPS Act of 2022|Research and Development, Competition, and Innovation Act|Supreme Court Security Funding Act of 2022}}
}}

The '''CHIPS and Science Act''' is a U.S. federal statute enacted by the [[117th United States Congress]] and signed into law by President [[Joe Biden]] on August 9, 2022. The act authorizes roughly $280 billion in new funding to boost domestic research and manufacturing of [[semiconductors]] in the United States, for which it appropriates $52.7 billion.<ref name="Politico 20220809">{{Cite web |last=Johnson |first=Lamar |date=August 9, 2022 |title=Biden ends slog on semiconductor bill with signature |url=https://www.politico.com/news/2022/08/09/biden-ends-slog-on-semiconductor-bill-with-signature-00050530 |access-date=August 9, 2022 |website=[[POLITICO]] |language=en |quote=Biden said Micron, an American-based company, announced a 10-year, $40 billion investment on Tuesday for factories and building memory chips as a result of the law. He also touted a Monday announcement by American companies Qualcomm and GlobalFoundries to invest $4 billion to produce semiconductors in the United States. |archive-date=August 21, 2022 |archive-url=https://web.archive.org/web/20220821173945/https://www.politico.com/news/2022/08/09/biden-ends-slog-on-semiconductor-bill-with-signature-00050530 |url-status=live }}</ref><ref>{{Cite web |last=Congressional Research Service |date=April 25, 2023 |title=Frequently Asked Questions: CHIPS Act of 2022 Provisions and Implementation |url=https://crsreports.congress.gov/product/pdf/R/R47523 |website=United States Congressional Research Service}}</ref><ref>{{Cite web |last=Zimmerman |first=Alessandra |date=August 26, 2022 |title=R&D Funding Breakdown: CHIPS and Science Act |url=https://www.aaas.org/sites/default/files/2023-01/CHIPS%20AAE.pdf?adobe_mc=MCMID%3D69209921711590814772918205876201604040%7CMCORGID%3D242B6472541199F70A4C98A6%2540AdobeOrg%7CTS%3D1701808990 |website=American Association for the Advancement of Science}}</ref> 
The act includes $39&nbsp;billion in subsidies for chip manufacturing on U.S. soil along with 25% investment tax credits for costs of manufacturing equipment, and $13&nbsp;billion for semiconductor research and workforce training, with the dual aim of strengthening American [[supply chain resilience]] and countering [[China]].<ref name="Economist_2023-03-06">{{Cite news |date=2023-03-06 |title=Taiwan's dominance of the chip industry makes it more important – No industry matters more to Taiwan than chipmaking |newspaper=[[The Economist]] |url=https://www.economist.com/special-report/2023/03/06/taiwans-dominance-of-the-chip-industry-makes-it-more-important |url-status=live |quote=America is also trying to stop China getting advanced chips. It passed the CHIPS and Science Act in August 2022, offering $39bn in subsidies and a 25% tax credit to promote manufacturing at home, as well as $13bn of investment in chip research. In October 2022 it banned the export of advanced chips and chipmaking gear to China. |access-date=March 11, 2023 |archive-date=March 11, 2023 |archive-url=https://web.archive.org/web/20230311010040/https://www.economist.com/special-report/2023/03/06/taiwans-dominance-of-the-chip-industry-makes-it-more-important }}</ref>{{ r | SJMN_2022-09-04 | p=1 | q=The CHIPS and Science Act aims to create a new world order. The $280 billion package includes $39 billion to help with the financing of semiconductor fabrication, assembly, testing and advanced packaging, as well as $13.2 billion toward research and workforce development. It also provides a 25% investment tax credit for capital costs of manufacturing equipment. }} It also invests $174 billion in the overall ecosystem of public sector research in science and technology, advancing [[human spaceflight]], [[quantum computing]], [[materials science]], [[biotechnology]], [[experimental physics]], research security, social and ethical considerations, workforce development and [[diversity, equity, and inclusion]] efforts at [[NASA]], [[National Science Foundation|NSF]], [[United States Department of Energy|DOE]], [[Economic Development Administration|EDA]], and [[National Institute of Standards and Technology|NIST]].<ref name="McKinsey 2022" /><ref name="CSIS 2 2022" /><ref name="Atlantic 20220810"/><ref name="AIP 2022"/><ref name="Energy.gov 2023 anniversary press release"/><ref name="Guston 2023"/>

The act does not have an official short title as a whole but is divided into three divisions with their own short titles: Division A is the '''CHIPS Act of 2022''' (where CHIPS stands for the former ''"Creating Helpful Incentives to Produce Semiconductors" for America Act''<ref>{{Cite web |date=October 14, 2022 |title=CHIPS for America Seeks Public Input on Financial Incentives, New Institutes for Semiconductor Manufacturing |url=https://www.commerce.gov/ |access-date=2024-12-18 |website=U.S. Department of Commerce |archive-date=October 14, 2022 |archive-url=http://web.archive.org/web/20221014131149/https://www.commerce.gov/news/blog/2022/10/chips-america-seeks-public-input-financial-incentives-new-institutes |url-status=live }}</ref>); Division B is the '''Research and Development, Competition, and Innovation Act'''; and Division C is the '''Supreme Court Security Funding Act of 2022'''.<ref>{{Cite web |date=August 9, 2022 |title=Text – H.R.4346 – 117th Congress (2021–2022): Supreme Court Security Funding Act of 2022 |url=http://www.congress.gov/ |access-date=2022-09-11 |website=U.S. Congress |archive-date=May 17, 2020 |archive-url=https://web.archive.org/web/20200517224927/http://www.congress.gov/ |url-status=live }}</ref>

By March 2024, analysts estimated that the act incentivized between 25 and 50 separate potential projects, with total projected investments of $160–200 billion and 25,000–45,000 new jobs. However, these projects are faced with delays in receiving grants due to bureaucratic hurdles and shortages of skilled workers, both during the construction phase and upon completion in the operational/manufacturing stage, where 40% of the permanent new workers will need two-year technician degrees and 60% will need four-year engineering degrees or higher.<ref name="Conness 2023"/><ref name=WSJ_2024-01-27 /><ref name = "wsjaug4"/> In addition, Congress had routinely made several funding deals that underfunded key basic research provisions of the Act by tens of billions of dollars.<ref name="Brookings 2023"/><ref name="Mui 2024"/>

== History ==
The '''CHIPS and Science Act''' combines two bipartisan bills: the '''Endless Frontier Act''',<ref>{{Cite web |title=Congressional Bill |date=May 21, 2020 |url=https://www.congress.gov/bill/116th-congress/senate-bill/3832 |access-date=January 5, 2023 |archive-date=November 27, 2022 |archive-url=https://web.archive.org/web/20221127192918/https://www.congress.gov/bill/116th-congress/senate-bill/3832 |url-status=live }}</ref> designed to boost investment in domestic high-tech research, and the '''CHIPS for America Act''',<ref>{{Cite web |title=Congressional Bill |date=June 11, 2020 |url=https://www.congress.gov/bill/116th-congress/house-bill/7178 |access-date=January 5, 2023 |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162755/https://www.congress.gov/bill/116th-congress/house-bill/7178 |url-status=live }}</ref> designed to bring semiconductor manufacturing back to the U.S. The act is aimed at competing with China.<ref>{{Cite journal |date=2014 |title=Bipartisan support for US science more likely in Senate than House |url=http://dx.doi.org/10.1063/pt.5.028154 |journal=Physics Today |issue=8 |page=6419 |doi=10.1063/pt.5.028154 |bibcode=2014PhT..2014h6419. |issn=1945-0699 |access-date=January 5, 2023 |archive-date=May 3, 2023 |archive-url=https://web.archive.org/web/20230503215855/https://pubs.aip.org/physicstoday/Online/6419/Bipartisan-support-for-US-science-more-likely-in |url-status=live }}</ref>

The '''Endless Frontier Act''' was initially presented to Senators [[Chuck Schumer]] (D-NY) and [[Todd Young]] (R-IN) by [[United States Under Secretary of State|Under Secretary of State]] [[Keith J. Krach|Keith Krach]] in October 2019, as part of the Global Economic Security Strategy to boost investment in high-tech research vital to U.S. national security.<ref>{{Cite web |date=March 21, 2022 |title=Purdue Center for Tech Diplomacy Chairman Keith Krach and Director Bonnie Glick Counsel Commerce Secretary Gina Raimondo on Securing Semiconductor Supply Chain |url=https://www.businesswire.com/news/home/20220321005892/en/Purdue-Center-for-Tech-Diplomacy-Chairman-Keith-Krach-and-Director-Bonnie-Glick-Counsel-Commerce-Secretary-Gina-Raimondo-on-Securing-Semiconductor-Supply-Chain |access-date=2023-01-05 |website=www.businesswire.com |language=en |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162755/https://www.businesswire.com/news/home/20220321005892/en/Purdue-Center-for-Tech-Diplomacy-Chairman-Keith-Krach-and-Director-Bonnie-Glick-Counsel-Commerce-Secretary-Gina-Raimondo-on-Securing-Semiconductor-Supply-Chain |url-status=live }}</ref><ref name="Krach">{{Cite web |last=Krach |first=Keith |date=June 17, 2021 |title=The Senate just passed the next Apollo program |url=https://thehill.com/blogs/congress-blog/technology/559065-the-senate-just-passed-the-next-apollo-program/ |access-date=2023-01-05 |website=The Hill |language=en-US |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162755/https://thehill.com/blogs/congress-blog/technology/559065-the-senate-just-passed-the-next-apollo-program/ |url-status=live }}</ref> The plan was to grow $150&nbsp;billion in government R&D funding into a $500&nbsp;billion investment, with matching investments from the private sector and a coalition of technological allies dubbed the "Techno-Democracies-10" (TD-10).<ref>{{Cite web |title=Read @Kearney: The US–China high-tech competition is modernizing American industries: an interview with Keith Krach |url=https://www.kearney.com/technology/article/-/insights/the-us-china-high-tech-competition-is-modernizing-american-industries-an-interview-with-keith-krach |access-date=2023-01-05 |website=Kearney |language=en |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162801/https://www.kearney.com/technology/article/-/insights/the-us-china-high-tech-competition-is-modernizing-american-industries-an-interview-with-keith-krach |url-status=live }}</ref><ref name="Krach" /> On May 27, 2020, Senators Young and Schumer, along with Congressmen [[Ro Khanna]] (D-CA) and [[Mike Gallagher (American politician)|Mike Gallagher]] (R-WI.), introduced the bipartisan, bicameral '''Endless Frontier Act''' to solidify the United States' leadership in scientific and technological innovation through increased investments in the discovery, creation, and commercialization of technology fields of the future.<ref>{{Cite web |title=Young, Schumer Unveil Endless Frontier Act to Bolster U.S. Tech Leadership and Combat China {{!}} U.S. Senator Todd Young of Indiana |url=https://www.young.senate.gov/newsroom/press-releases/young-schumer-unveil-endless-frontier-act-to-bolster-us-tech-leadership-and-combat-china |access-date=2023-01-05 |website=www.young.senate.gov |language=en |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162756/https://www.young.senate.gov/newsroom/press-releases/young-schumer-unveil-endless-frontier-act-to-bolster-us-tech-leadership-and-combat-china |url-status=live }}</ref>

The '''United States Innovation and Competition Act of 2021 (USICA)''' (S. 1260), formerly known as the Endless Frontier Act, was United States legislation sponsored by [[Party leaders of the United States Senate|Senate Majority Leader]] Chuck Schumer and Senator Young authorizing $110&nbsp;billion for basic and advanced technology research over a five-year period. Investment in basic and advanced research, commercialization, and education and training programs in [[artificial intelligence]], [[semiconductor]]s, [[quantum computing]], advanced communications, [[biotechnology]] and advanced energy, amounts to $100&nbsp;billion. Over $10&nbsp;billion was authorized for appropriation to designate ten regional technology hubs and create a [[supply chain crisis]]-response program.<ref>{{Cite web |title=The Endless Frontier Act: Shifting the Focus from Defense to Offense |url=https://www.natlawreview.com/article/endless-frontier-act-shifting-focus-defense-to-offense |access-date=2023-01-05 |website=The National Law Review |language=en |archive-date=May 13, 2021 |archive-url=https://web.archive.org/web/20210513090302/https://www.natlawreview.com/article/endless-frontier-act-shifting-focus-defense-to-offense |url-status=live }}</ref>

The CHIPS for America Act portion stemmed from Under Secretary of State [[Keith J. Krach|Krach]] and his team brokering the $12&nbsp;billion on-shoring of [[TSMC]] (Taiwan Semiconductor Manufacturing Company) to secure the supply chain of sophisticated semiconductors, on May 15, 2020.<ref>{{Cite news |last=Ip |first=Greg |title='Industrial Policy' Is Back: The West Dusts Off Old Idea to Counter China |url=https://www.wsj.com/articles/subsidies-chips-china-state-aid-biden-11627565906 |access-date=2023-01-05 |newspaper=Wall Street Journal |date=July 29, 2021 |language=en-US |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162755/https://www.wsj.com/articles/subsidies-chips-china-state-aid-biden-11627565906 |url-status=live }}</ref><ref>{{Cite web |title=Briefing with Under Secretary for Growth, Energy, and the Environment Keith Krach, Science and Technology Adviser to the Secretary Mung Chiang, and Assistant Secretary for International Security and Nonproliferation Christopher A. Ford On Taiwan Semiconductor Manufacturing Corporation's Intent to Invest $12 Billion In the U.S. and on the CCP's Ability to Undermine U.S. Export Controls |url=https://2017-2021.state.gov/briefing-with-under-secretary-for-growth-energy-and-the-environment-keith-krach-science-and-technology-adviser-to-the-secretary-mung-chiang-and-assistant-secretary-for-international-security-and-n/ |access-date=2023-01-05 |website=United States Department of State |language=en-US}}</ref><ref>{{Cite web |title=US woos Taiwan and its chipmakers in step toward trade pact |url=https://asia.nikkei.com/Politics/International-relations/US-China-tensions/US-woos-Taiwan-and-its-chipmakers-in-step-toward-trade-pact |access-date=2023-01-05 |website=Nikkei Asia |language=en-GB |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162759/https://asia.nikkei.com/Politics/International-relations/US-China-tensions/US-woos-Taiwan-and-its-chipmakers-in-step-toward-trade-pact |url-status=live }}</ref> Krach's stated strategy was to use the [[TSMC]] announcement as a stimulus for fortifying a trusted supply chain by attracting TSMC's broad ecosystem of suppliers; persuading other chip companies to produce in U.S., especially Intel and Samsung; inspiring universities to develop engineering curricula focused on semiconductor manufacturing and designing a bipartisan bill (CHIPS for America) to provide the necessary funding.<ref name=":02">{{Cite web |last=Patterson |first=Alan |date=August 1, 2022 |title=Architect of CHIPS Act Speaks on Its Impact |url=https://www.eetimes.com/architect-of-chips-act-speaks-on-its-impact/ |access-date=2023-01-05 |website=EE Times |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162801/https://www.eetimes.com/architect-of-chips-act-speaks-on-its-impact/ |url-status=live }}</ref> This led to Krach and his team's close collaboration in creating the CHIPS for America component with Senators [[John Cornyn]] (R-TX) and [[Mark Warner]] (D-VA).<ref>{{Cite web |title=Purdue Center for Tech Diplomacy Chairman Keith Krach and Director Bonnie Glick Counsel Commerce Secretary Gina Raimondo on Securing Semiconductor Supply Chain |url=https://www.yahoo.com/now/purdue-center-tech-diplomacy-chairman-224100125.html |access-date=2023-01-05 |website=www.yahoo.com |language=en-US |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162756/https://www.yahoo.com/now/purdue-center-tech-diplomacy-chairman-224100125.html |url-status=live }}</ref> In June 2020, Senator Warner joined U.S. Senator [[John Cornyn]] in introducing the $52&nbsp;billion CHIPS for America Act.<ref>{{Cite news |last=Hamblen |first=Matt |date=August 9, 2022 |title=President Biden signs CHIPS and Science Act: comments and reactions |language=en |work=Fierce Electronics |url=https://www.fierceelectronics.com/sensors/president-biden-signs-chips-and-science-act-comments-and-reactions |access-date=2023-01-05 |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162759/https://www.fierceelectronics.com/sensors/president-biden-signs-chips-and-science-act-comments-and-reactions |url-status=live }}</ref>

Both bills were eventually merged into the [[United States Innovation and Competition Act|U.S. Innovation and Competition Act]] (USICA). On June 8, 2021, the USICA passed 68–32 in the Senate with bipartisan support. The House version of the Bill, [[America COMPETES Act#America COMPETES Act of 2022|America COMPETES Act of 2022]] (H.R. 4521), passed on February 4, 2022. The Senate passed an amended bill by substituting the text of H.R. 4521 with the text of the USICA on March 28, 2022. A Senate and House conference was required to reconcile the differences, which resulted in the bipartisan '''CHIPS and Science Act''', or "CHIPS Plus".<ref>{{Cite web |date=July 27, 2022 |title=The Bipartisan CHIPS Act—and a United U.S.— Are China's Biggest Fear |url=https://www.newsweek.com/bipartisan-chips-act-united-us-are-chinas-biggest-fear-opinion-1728573 |access-date=2023-01-05 |website=Newsweek |language=en |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162756/https://www.newsweek.com/bipartisan-chips-act-united-us-are-chinas-biggest-fear-opinion-1728573 |url-status=live }}</ref> The bill passed the [[U.S. Senate]] by a vote of 64–33 on July 27, 2022.<ref name="Sprunt 1" /> On July 28, the $280 billion bill passed the [[U.S. House]] by a vote of 243–187–1.<ref>{{Cite web |last=Kelly |first=Makena |date=July 28, 2022 |title=CHIPS Act clears Congress, ensuring $52 billion boost to US foundries |url=https://www.theverge.com/2022/7/28/23282494/semiconductors-chips-and-science-act-joe-biden-congress-nvidia |access-date=2023-01-05 |website=The Verge |language=en-US |archive-date=September 1, 2022 |archive-url=https://web.archive.org/web/20220901231113/https://www.theverge.com/2022/7/28/23282494/semiconductors-chips-and-science-act-joe-biden-congress-nvidia |url-status=live }}</ref> On August 1, 2022, the magazine ''[[EE Times]]'' (Electronic Engineering) dubbed Under Secretary of State [[Keith J. Krach|Keith Krach]] ({{as of|2023|02|lc=y}}, now the current Chairman of the Krach Institute for Tech Diplomacy at [[Purdue University]]) the architect of the CHIPS and Science Act.<ref name=":02" /> The bill was signed into law by President [[Joe Biden]] on August 9, 2022.<ref>{{Cite web |date=2022-08-09 |title=Remarks by President Biden at Signing of H.R. 4346, "The CHIPS and Science Act of 2022" |url=https://bidenwhitehouse.archives.gov/briefing-room/speeches-remarks/2022/08/09/remarks-by-president-biden-at-signing-of-h-r-4346-the-chips-and-science-act-of-2022/ |access-date=2023-05-03 |website=The White House |language=en-US |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162759/https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/08/09/remarks-by-president-biden-at-signing-of-h-r-4346-the-chips-and-science-act-of-2022/ |url-status=live }}</ref>

== Background and provisions ==
[[File:President Biden Delivers Remarks on the CHIPS and Science Act.webm|thumb|President [[Joe Biden]] delivers remarks on the CHIPS and Science Act at a [[semiconductor fabrication plant]] in [[Clay, New York]], April 25, 2024.]]
The law constitutes an industrial policy initiative which takes place against the background of a perceived [[Artificial Intelligence Cold War|AI Cold War]] between the US and China, as [[artificial intelligence]] technology relies on semiconductors.<ref>{{Cite news |last=Herman |first=Arthur |date=17 October 2022 |title=The Chip War With China Is Just Getting Started |work=Forbes |url=https://www.forbes.com/sites/arthurherman/2022/10/17/the-chip-war-with-china-is-just-getting-started/?sh=4224c4346a08 |access-date=8 January 2023 |archive-date=January 8, 2023 |archive-url=https://web.archive.org/web/20230108111903/https://www.forbes.com/sites/arthurherman/2022/10/17/the-chip-war-with-china-is-just-getting-started/?sh=4224c4346a08 |url-status=live }}</ref> The law was considered amidst a [[2020–present global chip shortage|global semiconductor shortage]] and intended to provide subsidies and tax credits to chip makers with operations in the United States. The [[U.S. Department of Commerce]] was granted the power to allocate funds based on companies' willingness to sustain research, build facilities, and train new workers.<ref>{{Cite news |last=Swanson |first=Ana |date=August 3, 2022 |title=Congress Is Giving Billions to the Chip Industry. Strings Are Attached. |work=The New York Times |url=https://www.nytimes.com/2022/08/03/business/economy/chip-industry-congress.html |url-access=subscription |access-date=August 5, 2022 |archive-date=October 21, 2022 |archive-url=https://web.archive.org/web/20221021051739/https://www.nytimes.com/2022/08/03/business/economy/chip-industry-congress.html |url-status=live }}</ref>

For semiconductor and telecommunications purposes, the CHIPS Act designates roughly $106&nbsp;billion. The CHIPS Act includes $39&nbsp;billion in tax benefits, loan guarantees and grants, administered by the DOC to encourage American companies to build new chip manufacturing plants in the U.S.<ref>{{Cite web |title=What's in the recently passed CHIPS Act? |url=https://usafacts.org/articles/whats-in-the-recently-passed-chips-act/ |access-date=2022-08-15 |website=USAFacts |language=en |archive-date=October 15, 2022 |archive-url=https://web.archive.org/web/20221015070104/https://usafacts.org/articles/whats-in-the-recently-passed-chips-act/ |url-status=live }}</ref> Additionally, $11&nbsp;billion would go toward advanced semiconductor research and development, separable into $8.5&nbsp;billion of that total going to the [[National Institute for Standards and Technology]], $500&nbsp;million to [[Manufacturing USA]], and $2&nbsp;billion to a new public research hub called the National Semiconductor Technology Center. $24&nbsp;billion would go to a new 25 percent advanced semiconductor manufacturing tax credit to encourage firms to stay in the United States, and $200&nbsp;million would go to the [[National Science Foundation]] to resolve short-term labor supply issues.<ref name="McKinsey 2022" /><ref name="CSIS 2022" />

According to [[McKinsey]], "The CHIPS Act allocates $2 billion to the [[United States Department of Defense|Department of Defense]] to fund microelectronics research, fabrication, and workforce training. An additional $500 million goes to the [[United States Department of State|Department of State]] to coordinate with foreign-government partners on semiconductor supply chain security. And $1.5 billion funds the USA Telecommunications Act of 2020, which aims to enhance competitiveness of software and hardware supply chains of open [[radio access network|RAN]] [[5G]] networks."<ref name="McKinsey 2022">{{Cite web |last1=Badlam |first1=Justin |last2=Clark |first2=Stephen |last3=Gajendragakar |first3=Suhrid |last4=Kumar |first4=Adi |last5=O'Rourke |first5=Sara |last6=Swartz |first6=Dale |date=October 4, 2022 |title=The CHIPS and Science Act: Here's what's in it |url=https://www.mckinsey.com/industries/public-and-social-sector/our-insights/the-chips-and-science-act-heres-whats-in-it |access-date=October 5, 2022 |website=McKinsey & Company |archive-date=October 5, 2022 |archive-url=https://web.archive.org/web/20221005070010/https://www.mckinsey.com/industries/public-and-social-sector/our-insights/the-chips-and-science-act-heres-whats-in-it |url-status=live }}</ref><ref name="CSIS 2022">{{Cite journal |last1=Kersten |first1=Alexander |last2=Athanasia |first2=Gabrielle |last3=Arcuri |first3=Gregory |date=August 9, 2022 |title=A Look at the CHIPS-Related Portions of CHIPS+ |url=https://www.csis.org/analysis/look-chips-related-portions-chips |access-date=October 5, 2022 |website=Center for Strategic and International Studies |archive-date=October 5, 2022 |archive-url=https://web.archive.org/web/20221005151524/https://www.csis.org/analysis/look-chips-related-portions-chips |url-status=live }}</ref> (The open RAN research innovation fund is controlled by the [[National Telecommunications and Information Administration]].)<ref name="National Telecommunications and Information Administration Open RAN 2024">{{cite web | title=Public Wireless Supply Chain Innovation Fund | website=National Telecommunications and Information Administration | date=February 12, 2024 | url=https://www.ntia.gov/page/innovation-fund | access-date=April 30, 2024}}</ref> Companies are subjected to a ten-year ban prohibiting them from producing chips more advanced than [[28 nm process|28 nanometers]] in China and Russia if they are awarded subsidies under the law.<ref>{{Cite news |last1=Debby Wu |last2=Daniel Flatley |last3=Jenny Leonard |date=August 2, 2022 |title=US to Stop TSMC, Intel From Adding Advanced Chip Fabs in China |work=Bloomberg |url=https://www.bloomberg.com/news/articles/2022-08-02/us-to-stop-tsmc-intel-from-adding-advanced-chip-fabs-in-china |access-date=August 13, 2022 |archive-date=May 3, 2023 |archive-url=https://web.archive.org/web/20230503215915/https://www.bloomberg.com/news/articles/2022-08-02/us-to-stop-tsmc-intel-from-adding-advanced-chip-fabs-in-china |url-status=live }}</ref>

The law authorizes $174&nbsp;billion for uses other than semiconductor and telecom technologies.<ref name="McKinsey 2022" /><ref name="CSIS 2 2022" /> It authorizes, but does not appropriate, extended [[NASA]] funding for the [[International Space Station]] to 2030, partially funds the [[Artemis program]] returning humans to the Moon, and directs NASA to establish a Moon to Mars Program Office for a [[human mission to Mars]] beyond the Artemis program. The bill also obligates NASA to perform research into further domesticating its supply chains and diversifying and developing its workforce, reducing the [[environmental effects of aviation]], integrating [[unmanned aerial vehicle]] detection with [[air traffic control]], investigating [[nuclear propulsion]] for spacecraft, continuing the [[search for extraterrestrial intelligence]] and [[xenology]] efforts, and boosting [[astronomical survey]]s for [[Near-Earth object]]s including the [[NEO Surveyor]] project.<ref name="Politico 20220809" /><ref name="Errick 2022">{{Cite web |last=Errick |first=Kirsten |date=August 4, 2022 |title=NASA Authorization Act Aims to Strengthen U.S. Space Exploration |url=https://www.nextgov.com/emerging-tech/2022/08/nasa-authorization-act-aims-strengthen-us-space-exploration/375394/ |access-date=August 24, 2022 |website=Nextgov.com |archive-date=August 24, 2022 |archive-url=https://web.archive.org/web/20220824021158/https://www.nextgov.com/emerging-tech/2022/08/nasa-authorization-act-aims-strengthen-us-space-exploration/375394/ |url-status=live }}</ref>

The law could potentially invest $67&nbsp;billion in accelerating advanced zero-emissions technologies (such as improved [[energy storage]], [[hydrogen economy]] technologies, and [[carbon capture and storage]]) to mass markets, advancing building efficiency, and improving [[climate science]] research, according to the climate action think tank [[Rocky Mountain Institute]]. The law would invest $81&nbsp;billion in the NSF, including new money for [[STEM]] education (it recommends $100 million in rural schools, a 50 percent increase in Noyce Teaching Scholarships, and $300 million in a "STEM Teacher Corps")<ref name="AIP 2022">{{cite web |last=Peterson|first=Andrea|title=Workforce Diversity Initiatives in the CHIPS and Science Act | website=AIP | date=September 16, 2022 | url=https://ww2.aip.org/fyi/2022/workforce-diversity-initiatives-chips-and-science-act | access-date=April 28, 2024}}</ref> and defense against foreign [[intellectual property infringement]], and $20&nbsp;billion in the new Directorate for Technology, Innovation, and Partnerships, which would be tasked with deploying the above technologies as well as promoting social and ethical considerations, and authorizes but does not appropriate $12&nbsp;billion for [[ARPA-E]].<ref name="Atlantic 20220810">{{Cite web |last=Meyer |first=Robinson |date=August 10, 2022 |title=Congress Just Passed a Big Climate Bill. No, Not That One. |url=https://www.theatlantic.com/science/archive/2022/08/chips-act-climate-bill-biden/671095/ |access-date=2022-10-05 |website=The Atlantic |archive-date=October 5, 2022 |archive-url=https://web.archive.org/web/20221005151524/https://www.theatlantic.com/science/archive/2022/08/chips-act-climate-bill-biden/671095/ |url-status=live }}</ref><ref name="Guston 2023"/>  For the [[United States Department of Energy]] the law creates a new [[501(c)(3) organization]], the '''Foundation for Energy Security and Innovation''', to leverage [[philanthropy in the United States|philanthropy]] for improving the workforce and bolstering energy research.<ref name="DOE FESI announcement">{{cite web | title=Agency-Related Foundation Will Propel DOE to New Heights | website=Energy.gov | date=February 9, 2023 | url=https://www.energy.gov/technologytransitions/articles/agency-related-foundation-will-propel-doe-new-heights | access-date=July 31, 2024}}</ref> It contains annual DOE budget increases for other purposes including [[supercomputer]], [[nuclear fusion]] and [[particle accelerator]] research as well as [[minority-serving institution]] outreach and workforce development for teachers, and directs the DOC to establish $10&nbsp;billion worth of research hubs in post-industrial rural and urban communities that have been subjected to historical underinvestment.<ref name="McKinsey 2022" /><ref name="AIP 2022"/><ref name="CSIS 2 2022">{{Cite journal |last1=Arcuri |first1=Gregory |last2=Shivakumar |first2=Sujai |date=August 11, 2022 |title=A Look at the Science-Related Portions of CHIPS+ |url=https://www.csis.org/analysis/look-science-related-portions-chips |access-date=October 5, 2022 |website=Center for Strategic and International Studies |archive-date=October 5, 2022 |archive-url=https://web.archive.org/web/20221005151534/https://www.csis.org/analysis/look-science-related-portions-chips |url-status=live }}</ref><ref name="Ross Muro 2024">{{cite web |last1=Ross|first1=Martha|last2=Muro|first2=Mark|title=How federal, state, and local leaders can leverage the CHIPS and Science Act as a landmark workforce opportunity | website=Brookings | date=January 31, 2024 | url=https://www.brookings.edu/articles/how-federal-state-and-local-leaders-can-leverage-the-chips-and-science-act-as-a-landmark-workforce-opportunity/ | access-date=April 28, 2024}}</ref>

As a national security law, the law contains a variety of provisions related to research ethics, foreign talent recruitment, restrictions on [[Confucius Institute]]s, and establishing new research security initiatives in the DOE, NIST, and the NSF.<ref name="AAU 2022">{{cite web | title=CHIPS and Science Act Summary of Research Security Provisions | website=Association of American Universities (AAU) | date=September 9, 2022 | url=https://www.aau.edu/sites/default/files/AAU-Files/Key-Issues/Science-Security/CHIPSandScienceFinalResearchSecurityProvisions.pdf | access-date=April 28, 2024}}</ref>

The law makes extensive recommendations to the NSF to add social, legal, and ethical considerations to the award process in all of its research activities, hinting at an embrace of [[technology assessment#Forms and concepts of technology assessment|public participatory technology assessment]]; the law does ''not'' invoke an NSF doctrine called the "broader impacts criterion" to do so.<ref name="Guston 2023">{{cite web | last=Guston | first=David | title=Making the Most of the "Ethical and Societal Considerations" in the CHIPS and Science Act | website=Issues in Science and Technology | date=May 4, 2023 | url=https://issues.org/ethical-societal-considerations-nsf-guston/ | access-date=April 28, 2024}}</ref> The law invests roughly $90 billion in strengthening and diversifying the STEM workforce through 33 programs, many of them incorporated deeply in the aforementioned semiconductor incentive, NSF labor supply, Tech Hubs, and DoD microelectronics R&D efforts; beyond those, the law authorizes $2.8 billion for standalone education projects, creates a Chief Diversity Officer position and codifies the [[Eddie Bernice Johnson]] INCLUDES Network to serve as the NSF's main [[diversity, equity, and inclusion]] program. The law expands NSF demographic data collection and workplace inclusion efforts, and help to grantees in caregiver roles and the fight against sexual harassment.<ref name="AIP 2022"/> The law emphasizes skilled technical jobs that do not require a bachelor's degree, and directs grant applicants to closely integrate workforce initiatives with job training; notably, it does ''not'' invest in the [[United States Department of Labor]] to carry this out.<ref name="Ross Muro 2024"/><ref name="AIP 2022"/>

== Passage ==
[[File:P20220809ES-0333 (52385519067).jpg|thumb|President [[Joe Biden]] signing the bill into law on the [[South Lawn]] of the White House on August 9, 2022]]
[[File:117th Congress 2nd session Senate roll call 271.svg|thumb|upright=1.35|'''July 27, 2022 Senate vote by state'''
{{legend|#5fd170ff|Two yeas}}
{{legend|#00ff66ff|Yea and not voting}}
{{legend|#ffd700ff|Yea and nay}}
{{legend|#ff3333ff|Two nays}}
{{legend|#ff8080ff|Nay and not voting}}]]
[[File:117th Congress roll call 404.svg|thumb|upright=1.35|'''July 28, 2022 House vote by congressional district'''
{{legend|#92c5deff|Democratic yea (219)}}
{{legend|#ffff00ff|Democratic "present" (1)}}
{{legend|#ff6600ff|Republican yea (24)}}
{{legend|#f48882ff|Republican nay (187)}}]]
Every senator in the [[Senate Democratic Caucus]] except for [[Bernie Sanders]] voted in favor of passing the CHIPS Act, and they were joined by seventeen Republican senators, including Senate Republican leader [[Mitch McConnell]], Utah senator [[Mitt Romney]], and South Carolina senator [[Lindsey Graham]].<ref name="Sprunt 1">{{Cite news |last=Sprunt |first=Barbara |date=July 27, 2022 |title=Legislation to subsidize U.S.-made semiconductor chips heads to Biden's desk |work=NPR |url=https://www.npr.org/2022/07/26/1113470753/chip-production-semiconductor-senate |access-date=May 3, 2023 |archive-date=October 24, 2022 |archive-url=https://web.archive.org/web/20221024101503/https://www.npr.org/2022/07/26/1113470753/chip-production-semiconductor-senate |url-status=live }}</ref>

== Reception ==

=== Support ===
Many legislators and elected officials from across both the federal government and various state governments endorsed the passage. A large group of governors consisting of Pennsylvania's [[Tom Wolf]], Alabama's [[Kay Ivey]], California's [[Gavin Newsom]], Kentucky's [[Andy Beshear]], Michigan's [[Gretchen Whitmer]], Wisconsin's [[Tony Evers]], Illinois' [[J. B. Pritzker]], Kansas' [[Laura Kelly]], and North Carolina's [[Roy Cooper]] pushed for the passage of the bill back in November 2021.<ref>{{Cite web |date=November 10, 2021 |title=Governor Wolf, Bipartisan Governors Urge Congress to Pass CHIPS Act to Create American Jobs, Boost Semiconductor Production |url=https://www.governor.pa.gov/newsroom/governor-wolf-bipartisan-governors-urge-congress-to-pass-chips-act-to-create-american-jobs-boost-semiconductor-production/ |access-date=2022-08-11 |website=Governor Tom Wolf |language=en-US |archive-date=June 29, 2022 |archive-url=https://web.archive.org/web/20220629103852/https://www.governor.pa.gov/newsroom/governor-wolf-bipartisan-governors-urge-congress-to-pass-chips-act-to-create-american-jobs-boost-semiconductor-production/ |url-status=dead }}</ref><ref>{{Cite web |title=Governors urge passage of CHIPS Act funding to spur semiconductor 're-shoring' {{!}} InsideTrade.com |url=https://insidetrade.com/daily-news/governors-urge-passage-chips-act-funding-spur-semiconductor-%E2%80%98re-shoring%E2%80%99 |access-date=2022-08-11 |website=insidetrade.com |archive-date=August 11, 2022 |archive-url=https://web.archive.org/web/20220811003715/https://insidetrade.com/daily-news/governors-urge-passage-chips-act-funding-spur-semiconductor-%E2%80%98re-shoring%E2%80%99 |url-status=live }}</ref>

Separately, Ohio governor [[Mike DeWine]], whose state became the home of [[Intel]]'s newest [[semiconductor fabrication plant]] in the [[Columbus, Ohio|Columbus]] suburb of [[New Albany, Ohio|New Albany]], as well as Texas governor [[Greg Abbott]] and Texas senator [[John Cornyn]], whose state was the home of a major investment from [[Samsung]], each pushed for the bill to be passed and applauded its advancement through Congress.<ref>{{Cite web |date=July 28, 2022 |title=Congress passes CHIPS Act, paving way for microchip plant in Ohio |url=https://www.news5cleveland.com/news/state/congresss-passage-of-chips-act-paves-way-for-intels-microchip-plant-in-ohio |access-date=2022-08-11 |website=WEWS |language=en |archive-date=August 7, 2022 |archive-url=https://web.archive.org/web/20220807235714/https://www.news5cleveland.com/news/state/congresss-passage-of-chips-act-paves-way-for-intels-microchip-plant-in-ohio |url-status=live }}</ref><ref>{{Cite web |last=BeMiller |first=Haley |title=Intel CEO: Company moving 'full speed ahead' on Ohio plans after CHIPS Act passes Congress |url=https://www.dispatch.com/story/news/2022/07/28/chips-act-four-ohio-republicans-boost-bill-pushed-intel/10176845002/ |access-date=2022-08-11 |website=The Columbus Dispatch |language=en-US |archive-date=August 9, 2022 |archive-url=https://web.archive.org/web/20220809162258/https://www.dispatch.com/story/news/2022/07/28/chips-act-four-ohio-republicans-boost-bill-pushed-intel/10176845002/ |url-status=live }}</ref><ref>{{Cite book |last=Moneyhon |first=Carl H. |url=http://dx.doi.org/10.1093/anb/9780198606697.article.0400249 |title=Coke, Richard (1829–1897), governor of Texas and U.S. senator |date=2000 |publisher=Oxford University Press |series=American National Biography Online |doi=10.1093/anb/9780198606697.article.0400249 |access-date=August 11, 2022 |archive-date=May 3, 2023 |archive-url=https://web.archive.org/web/20230503215915/https://www.anb.org/display/10.1093/anb/9780198606697.001.0001/anb-9780198606697-e-0400249;jsessionid=28781C970EBA7533188AB63465FC41D1 |url-status=live }}</ref> It has received widespread support from chip firms, though they were concerned about the provision banning them from further investments in China.<ref>{{Cite news |last=Nellis |first=Stephen |date=July 20, 2022 |title=Chip designers warm to U.S. bill despite big benefits to Intel |work=Reuters |url=https://www.reuters.com/technology/us-chip-industry-split-over-chips-act-benefits-intel-sources-2022-07-18/ |access-date=August 5, 2022 |archive-date=October 12, 2022 |archive-url=https://web.archive.org/web/20221012210829/https://www.reuters.com/technology/us-chip-industry-split-over-chips-act-benefits-intel-sources-2022-07-18/ |url-status=live }}</ref><ref>{{Cite news |last1=Cheng Ting-Fang |last2=Lauly Li |last3=Yifan Yu |date=August 2, 2022 |title=CHIPS Act leaves chipmakers facing choice between U.S. and China |work=NIKKEI Asia |url=https://asia.nikkei.com/Business/Tech/Semiconductors/CHIPS-Act-leaves-chipmakers-facing-choice-between-U.S.-and-China |access-date=August 5, 2022 |archive-date=October 19, 2022 |archive-url=https://web.archive.org/web/20221019180945/https://asia.nikkei.com/Business/Tech/Semiconductors/CHIPS-Act-leaves-chipmakers-facing-choice-between-U.S.-and-China |url-status=live }}</ref>

[[Intel]] CEO [[Pat Gelsinger]] said during an earnings call on September 30, 2022, that CHIPS Act subsidies were leading the company to explore building empty fab buildings (known as a "shell-first strategy") and aggressively acquire smaller competitors before installing any equipment, to avoid contributing to a predicted semiconductor glut.<ref name="Intel end of Q3 2022 investor call">{{Cite web |last=Motley Fool Transcribing |date=October 28, 2022 |title=Intel (INTC) Q3 2022 Earnings Call Transcript |url=https://www.fool.com/earnings/call-transcripts/2022/10/27/intel-intc-q3-2022-earnings-call-transcript/ |access-date=March 1, 2023 |website=The Motley Fool |archive-date=March 1, 2023 |archive-url=https://web.archive.org/web/20230301044729/https://www.fool.com/earnings/call-transcripts/2022/10/27/intel-intc-q3-2022-earnings-call-transcript/ |url-status=live }}</ref><ref name="Harris Feb282023" />

=== Opposition ===
The bill was criticized by Republican House leader [[Kevin McCarthy]] and senator [[Bernie Sanders]] as a "blank check", which the latter equated to a bribe to semiconductor companies.<ref name="Sprunt 1" /><ref name="verge-clears-congress">{{Cite news |last=Kelly |first=Makena |date=July 28, 2022 |title=CHIPS Act clears Congress, ensuring $52 billion boost to US foundries |work=The Verge |url=https://www.theverge.com/2022/7/28/23282494/semiconductors-chips-and-science-act-joe-biden-congress-nvidia |access-date=August 5, 2022 |archive-date=September 1, 2022 |archive-url=https://web.archive.org/web/20220901231113/https://www.theverge.com/2022/7/28/23282494/semiconductors-chips-and-science-act-joe-biden-congress-nvidia |url-status=live }}</ref><ref>{{Cite web |title=NEWS: Sanders Opposes All Blank Checks to Chip Companies » Senator Bernie Sanders |url=https://www.sanders.senate.gov/press-releases/news-sanders-opposes-all-blank-checks-to-chip-companies/ |access-date=2022-09-09 |website=Senator Bernie Sanders |language=en-US |archive-date=September 9, 2022 |archive-url=https://web.archive.org/web/20220909122507/https://www.sanders.senate.gov/press-releases/news-sanders-opposes-all-blank-checks-to-chip-companies/ |url-status=live }}</ref> China lobbied against the bill and criticized it as being "reminiscent of a 'Cold War mentality{{'"}}.<ref>{{Cite web |last=O'Meara |first=Sean |date=July 29, 2022 |title=China Says US Chip Act Will Harm Supply Chain, Global Trade |url=https://www.asiafinancial.com/china-says-us-chip-act-will-harm-supply-chain-global-trade |access-date=2022-08-09 |website=Asia Financial |language=en-US |archive-date=August 25, 2022 |archive-url=https://web.archive.org/web/20220825201518/https://www.asiafinancial.com/china-says-us-chip-act-will-harm-supply-chain-global-trade |url-status=live }}</ref>

=== Concerns of protectionism ===
In a piece for the [[Brookings Institution]] on December 20, 2022, [[Sarah Kreps]] and Paul Timmers expressed concerns regarding the protectionist provisions of the CHIPS and Science Act and the risk of a subsidy race with the [[EU]], which proposed its own [[European Chips Act]] in 2022.<ref name="Brookings">{{Cite news |last1=Timmers |first1=Paul |last2=Kreps |first2=Sarah |date=20 December 2022 |title=Bringing economics back into EU and U.S. chips policy |work=Brookings |url=https://www.brookings.edu/techstream/bringing-economics-back-into-the-politics-of-the-eu-and-u-s-chips-acts-china-semiconductor-competition/ |access-date=8 January 2023 |archive-date=January 8, 2023 |archive-url=https://web.archive.org/web/20230108121604/https://www.brookings.edu/techstream/bringing-economics-back-into-the-politics-of-the-eu-and-u-s-chips-acts-china-semiconductor-competition/ |url-status=live }}</ref>

===Concerns of poor workforce development===
In a piece for Brookings on May 25, 2023, Annelies Goger and Banu Ozkazanc-Pan found the Act was vague in many of its workforce development provisions, and criticized the statute for failing to offer a comprehensive, 'wraparound' approach to workforce development. They focused on its lack of supportive provisions for closing racial and gender gaps in STEM, its lack of requirements for equitable access to child care and non-academic mentorship programs beyond well-resourced communities, and its piecemeal approach to the innovation cycle.<ref name="Goger Ozkazanc-Pan 2023">{{cite web |first1=Annelies |last1=Goger|first2=Banu|last2=Ozkazanc-Pan|title=The CHIPS and Science Act won't build inclusive innovation ecosystems on its own | website=Brookings | date=May 25, 2023 | url=https://www.brookings.edu/articles/the-chips-and-science-act-wont-build-inclusive-innovation-ecosystems-on-its-own/ | access-date=April 27, 2024}}</ref> Seven months later, Brookings staffers Martha Ross and Mark Muro also said the act's workforce provisions reflected a fragmented approach and their costs were difficult to determine.<ref name="Ross Muro 2024"/>

===Environmental concerns===
Writing in the Substack climate and finance newsletter ''The Gigaton'', Stanford MBA students Georgia Carroll and Zac Maslia criticized the Act for lacking incentives to add [[renewable energy]] to chipmakers' [[base load]]s, and [[reclaimed water]] and [[Per- and polyfluoroalkyl substances|PFAS]] alternatives to their material inputs, and noted the extensive environmental impact of the chipmaker and data center industry was at odds with the output from the new research programs of the Act.<ref name="Gigaton 2024">{{cite web | last1=Carroll | first1=Georgia |last2=Maslia|first2=Zac | title=CHIPS Act: The Climate Consequences of a Growing Demand for Semiconductors | website=Substack | date=May 2, 2024 | url=https://thegigaton.substack.com/p/chips-act-the-climate-consequences| access-date=May 2, 2024}}</ref>

===Concerns of inaction on unions, stock buybacks===
[[Robert Kuttner]], [[economic nationalist]] commentator and editor of ''[[The American Prospect]]'', expressed concerns that the bill did not provide enough resources to allow local residents near fabs to organize or form a [[trade union]] (thereby making unions rely too heavily on [[community benefits agreement]]s compared to federal policy), that the Commerce Department would be too friendly to states with [[right-to-work law]]s (where the first new fabs would be built), that the bill did not restrictively define a "domestic company" regarding financing, and that fab owners would simply use CHIPS Act money to [[Share repurchase|buy back stocks]].<ref name="Kuttner 2023">{{Cite web |last=Kuttner |first=Robert |date=January 24, 2023 |title=Reclaiming U.S. Industry |url=https://prospect.org/economy/2023-01-24-biden-american-industrial-policy/ |access-date=February 22, 2023 |website=The American Prospect |archive-date=February 3, 2023 |archive-url=https://web.archive.org/web/20230203113154/https://prospect.org/economy/2023-01-24-biden-american-industrial-policy/ |url-status=live }}</ref> In response to these concerns, on February 28, 2023, [[United States Secretary of Commerce]] [[Gina Raimondo]] published the first application for CHIPS Act grants, which encourages fab operators to use [[Project Labor Agreement]]s for facilitating union negotiations during construction, outline their plans to curtail stock buybacks, share excess profits with the federal government, and open or point out nearby [[child care]] facilities.<ref name="The New York Times 2023">{{Cite web |last1=Tankersley |first1=Jim |last2=Swanson |first2=Jim |date=February 27, 2023 |title=Biden's Semiconductor Plan Flexes the Power of the Federal Government |url=https://www.nytimes.com/2023/02/27/us/politics/chips-act-biden-commerce-department.html |access-date=March 1, 2023 |website=The New York Times |archive-date=February 28, 2023 |archive-url=https://web.archive.org/web/20230228235312/https://www.nytimes.com/2023/02/27/us/politics/chips-act-biden-commerce-department.html |url-status=live }}</ref><ref name="Harris Feb282023">{{Cite web |last=Harris |first=Lee |date=February 28, 2023 |title=Harris on TAP: Unions for On-Time Construction |url=https://prospect.org/blogs-and-newsletters/tap/2023-02-28-commerce-semiconductor-construction-labor/ |access-date=March 1, 2023 |website=The American Prospect |archive-date=March 1, 2023 |archive-url=https://web.archive.org/web/20230301070502/https://prospect.org/blogs-and-newsletters/tap/2023-02-28-commerce-semiconductor-construction-labor/ |url-status=live }}</ref><ref name="Harris Jun222023"/> The application led to over 200 statements of interest from private companies within the first month and a half, looking to invest across the entire semiconductor supply chain in 35 states;<ref name="U.S. Department of Commerce 2023">{{cite web | title=CHIPS for America's Strong Start | website=U.S. Department of Commerce | date=April 13, 2023 | url=https://content.govdelivery.com/accounts/USDOC/bulletins/354ebdf | access-date=May 26, 2023}}</ref><ref name="Dayen 2023"/> by June 2023, the number had reached over 300.<ref name="Lee Nellis 2023">{{cite web | last1=Lee | first1=Jane|last2=Nellis |first2=Stephen| title=Applied Materials to invest $4 bln in Silicon Valley chip research center | website=Reuters | date=May 22, 2023 | url=https://www.reuters.com/technology/applied-materials-invest-4-bln-silicon-valley-chip-research-center-2023-05-22/ | access-date=June 24, 2023}}</ref> The ''Prospect'' later covered the lack of progress in PLA talks between key investor [[TSMC]] and local unions in Phoenix, and included both author Lee Harris's claim that the Raimondo guidance was insufficient in helping the talks, and liberal commentator [[Ezra Klein]]'s criticism of the Raimondo guidance as excessive.<ref name="Harris Apr72023">{{Cite web |last=Harris |first=Lee |date=April 7, 2023 |title=BASED: CHIPS Act Manufacturer Snubs Union Workers |url=https://americanprospect.bluelena.io/index.php?action=social&chash=cb79f8fa58b91d3af6c9c991f63962d3.1990 |access-date=April 7, 2023 |website=The American Prospect |archive-date=April 7, 2023 |archive-url=https://web.archive.org/web/20230407154116/https://americanprospect.bluelena.io/index.php?action=social&chash=cb79f8fa58b91d3af6c9c991f63962d3.1990 |url-status=live }}</ref> Harris later reported that as a consequence TSMC and its non-union subcontractors had routinely engaged in alleged wage theft, underreported safety violations, and cut out various installation procedures that would have prevented costly repairs, delaying its projects.<ref name="Harris Jun222023">{{cite web | last=Harris | first=Lee | title=Chipmaker's Scramble to Build Marred by Mistakes and Injuries | website=The American Prospect | date=June 22, 2023 | url=https://prospect.org/labor/2023-06-22-tsmc-semiconductor-factory-phoenix-accidents/ | access-date=June 24, 2023}}</ref>

===Antitrust concerns===
In February 2024, the antitrust think tank [[American Economic Liberties Project]] released a report evaluating the state of the semiconductor industry after the CHIPS and Science Act passed. It found that the Act was insufficient in dealing with what it saw as the effective [[monopolization]] and [[monopsony]] of the American semiconductor industry by TSMC and by '[[fabless]]' semiconductor firms that practiced routine outsourcing, such as [[Nvidia]] and [[Apple Inc.]], the result of shareholder-driven decisions. It also found the Act was insufficient in shoring up American mid-level, consumer market-oriented manufacturing by increasing competition and resiliency there. It recommended that the Commerce Department increasingly involve the [[Federal Trade Commission]] and other antitrust agencies in its decision-making, incubate four mid-size competitors to TSMC, require 'fabless' firms to double their source numbers, and strategically levy [[tariff]]s and fees on select consumer electronics deemed lacking in American sourcing.<ref name="Achilles Peinert Rangel 2024">{{cite web | last1=Achilles | first1=Todd | last2=Peinert | first2=Erik | last3=Rangel | first3=Daniel | title=Reshoring and Restoring: CHIPS Implementation for a Competitive Semiconductor Industry | website=American Economic Liberties Project | date=February 6, 2024 | url=https://www.economicliberties.us/our-work/reshoring-and-restoring-chips-implementation-for-a-competitive-semiconductor-industry/ | access-date=March 17, 2024}}</ref>

== Impact ==
[[File:P20221206AS-1047 (52651362655).jpg|thumb|President Biden taking a selfie with construction workers at a TSMC plant in Arizona, December 2022]]

===Science impact===
{{Expand section|small=no|find=impact of CHIPS and Science Act on basic research -semiconductors|with=some examples of research projects benefiting from the act, beyond semiconductors and telecom|date=April 2024}}
In August 2023, around the one-year anniversary of the act becoming law, the NSF released a fact sheet outlining what it had done in the first year. Notably, the Technology, Innovation and Partnerships Directorate had awarded more than 760 grants and signed 18 contracts in research and development, and incentivized $4 billion in private capital and 35 exits from federal seed funding for private companies; the NSF issued two letters to employees on research security, increased STEM scholarship amounts, and created a National Secure Data Service per the act's directives.<ref name="NSF CHIPS fact sheet 2023">{{cite web | title=Celebrating One Year of 'CHIPS and Science'| website=NSF - National Science Foundation | date=August 4, 2023 | url=https://nsf-gov-resources.nsf.gov/2023-08/NSF%20CHIPS_and_Science_1_year_fact_sheet.pdf | access-date=April 29, 2024}}</ref> The DOE also issued a press release to commemorate the anniversary, noting materials science, quantum computing and biotechnology had received major attention from the act, as well as efforts to improve energy use, materials sourcing transparency and recycling of computer chips.<ref name="Energy.gov 2023 anniversary press release">{{cite web |last=Bui|first=Vivien| title=The CHIPS and Science Act: A Game-Changer in its First Year | website=Energy.gov | date=August 10, 2023 | url=https://www.energy.gov/articles/chips-and-science-act-game-changer-its-first-year | access-date=April 29, 2024}}</ref>

On the second anniversary of the Act becoming law, the NSF put out an updated fact sheet. The TIP Directorate had now awarded a two-year total of 2,455 grants and signed 25 contracts in research and development, and incentivized $8.15 billion in private capital and more than 75 exits from federal seed funding; the NSF also designated 10 new Regional Innovation Engines in January 2024, issued the first 40 awards in the ExLENT program promoting [[experiential learning]] in semiconductor engineering at universities, launched the NSF SBIR/SBTT Fast-Track pilot program for certain startups and the APTO program promoting technology prediction, and signed a memorandum of understanding with the Commerce Department for further action in workforce development.<ref name="NSF 2024">{{cite web |last1=Gianchandani|first1=Erwin|last2=Narcho|first2=Gracie | title=Celebrating the 2nd anniversary of the 'CHIPS and Science Act of 2022' | website=NSF - National Science Foundation | date=August 13, 2024 | url=https://new.nsf.gov/tip/updates/celebrating-2nd-anniversary-chips-science-act-2022 | access-date=September 12, 2024}}</ref>

In September 2024, the [[National Academies of Sciences, Engineering, and Medicine]] produced a report on NASA's organizational efficiency mandated by the law,<ref>{{USCode|51|20113}}, {{USStat|136|1754}}</ref> which found several critical weaknesses, namely, in long-term planning, workforce retention, headquarters staffing levels, budgetary support from Congress, aging infrastructure, and emphasis on research and development as part of instrument planning.<ref name="NASEM report on NASA infrastructure">{{cite book | author=Committee on NASA Mission Critical Workforce, Infrastructure, and Technology | author2=Aeronautics and Space Engineering Board | author3=Space Studies Board | author4=Division on Engineering and Physical Sciences | author5=National Academies of Sciences, Engineering, and Medicine | title=NASA at a Crossroads: Maintaining Workforce, Infrastructure, and Technology Preeminence in the Coming Decades | publisher=National Academies Press | publication-place=Washington, D.C. | date=2024 | isbn=978-0-309-71631-4 | doi=10.17226/27519 }}</ref>

===Project announcements===
Many companies and ecosystem suppliers have announced investment plans since May 2020, when TSMC announced that it would build a fab in Arizona,<ref>{{Cite web |last1=Krach |first1=Keith |last2=Hormats |first2=Bob |date=December 21, 2022 |title=Funding the CHIPS and Science Act is a national security imperative |url=https://thehill.com/opinion/technology/3782796-funding-the-chips-and-science-act-is-a-national-security-imperative/ |access-date=2023-01-05 |website=The Hill |language=en-US |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162756/https://thehill.com/opinion/technology/3782796-funding-the-chips-and-science-act-is-a-national-security-imperative/ |url-status=live }}</ref><ref name=":02" /><ref name="Conness 2023" /><ref name="Ravi Casanova 2022" /> which upon completion began producing [[Apple A16]] chips in earnest in mid-September 2024, according to independent journalist Tim Culpan,<ref name="Culpan 2024">{{cite web | last=Culpan | first=Tim | title=Apple Mobile Processors Are Now Made in America. By TSMC | website=Substack | date=September 17, 2024 | url=https://timculpan.substack.com/p/apple-mobile-processors-are-now-made | access-date=October 22, 2024}}</ref> achieving 4 percent higher production yields than the average in Taiwan by late October.<ref name="Bloomberg TSMC yields">{{cite web | last=Hawkins | first=Mackenzie | title=TSMC's Arizona Chip Production Yields Surpass Taiwan's in Win for US Push | website=Bloomberg.com | date=October 24, 2024 | url=https://www.bloomberg.com/news/articles/2024-10-24/tsmc-s-arizona-chip-production-yields-surpass-taiwan-s-a-win-for-us-push | access-date=November 4, 2024}}</ref>

These include (before the act passed on August 9, 2022):

* In July 2021, [[GlobalFoundries]] announced plans to build a new $1&nbsp;billion [[Semiconductor fabrication plant|fab]] in Upstate New York.<ref>{{Cite press release |title=GlobalFoundries Plans to Build New Fab in Upstate New York in Private-Public Partnership to Support U.S. Semiconductor Manufacturing |date=July 19, 2021 |publisher=GlobalFoundries |url=https://investors.gf.com/news-releases/news-release-details/globalfoundries-plans-build-new-fab-upstate-new-york-private |access-date=2023-01-05 |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162812/https://investors.gf.com/news-releases/news-release-details/globalfoundries-plans-build-new-fab-upstate-new-york-private |url-status=live }}</ref>
* In November 2021, [[Samsung]] announced plans to build a $17&nbsp;billion semiconductor factory to begin operations in the second half of 2024. It is the largest foreign direct investment ever in the state of Texas.<ref>{{Cite news |date=November 24, 2021 |title=Samsung says it will build $17B chip factory in Texas |language=en |work=NPR |agency=Associated Press |url=https://www.npr.org/2021/11/24/1058770506/samsung-says-it-will-build-17b-chip-factory-in-texas |access-date=2023-01-05 |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162755/https://www.npr.org/2021/11/24/1058770506/samsung-says-it-will-build-17b-chip-factory-in-texas |url-status=live }}</ref>
* In January 2022, Intel announced an initial $20&nbsp;billion investment that will generate 3,000 jobs, the largest investment in Ohio's history, with plans to grow to $100&nbsp;billion investment in eight fabrication plants.<ref>{{Cite web |title=Intel to invest up to $100 billion in Ohio chip plants |url=https://www.cnbc.com/2022/01/21/intel-plans-20-billion-chip-manufacturing-site-in-ohio.html |access-date=2023-01-05 |website=CNBC |date=January 21, 2022 |language=en |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162755/https://www.cnbc.com/2022/01/21/intel-plans-20-billion-chip-manufacturing-site-in-ohio.html |url-status=live }}</ref>
* In May 2022, [[Purdue University]] launched the nation's first comprehensive semiconductor degrees program in anticipation of the CHIPS Act spurring the creation of jobs for 50,000 trained semiconductor engineers in the United States.<ref>{{Cite web |last=Service |first=Purdue News |title=Purdue launches nation's first comprehensive Semiconductor Degrees Program |url=https://www.purdue.edu/newsroom/releases/2022/Q2/purdue-launches-nations-first-comprehensive-semiconductor-degrees-program.html |access-date=2023-01-05 |website=www.purdue.edu |date=May 27, 2022 |language=en |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162758/https://www.purdue.edu/newsroom/releases/2022/Q2/purdue-launches-nations-first-comprehensive-semiconductor-degrees-program.html |url-status=live }}</ref><ref>{{Cite web |last=Paul |first=Joseph |title=Purdue launches nation's first semiconductor degree program |url=https://www.wlfi.com/news/purdue-launches-nations-first-semiconductor-degree-program/article_e2e3ccac-ddf3-11ec-a80c-478643b0c0f6.html |access-date=2023-01-05 |website=WLFI News 18 |date=May 27, 2022 |language=en |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162755/https://www.wlfi.com/news/purdue-launches-nations-first-semiconductor-degree-program/article_e2e3ccac-ddf3-11ec-a80c-478643b0c0f6.html |url-status=live }}</ref>
* In May 2022, [[Texas Instruments]] broke ground on new 300-mm semiconductor wafer fabrication plants in Sherman, Texas, and projected its investments will reach $30&nbsp;billion and create as many as 3,000 jobs.<ref>{{Cite web |date=May 20, 2022 |title=Texas Instruments Breaks Ground on New 300mm Semiconductor Wafer Fabrication Plant in Sherman, Texas |url=https://www.semiconductor-digest.com/texas-instruments-breaks-ground-on-new-300mm-semiconductor-wafer-fabrication-plant-in-sherman-texas/ |access-date=January 5, 2023 |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162757/https://www.semiconductor-digest.com/texas-instruments-breaks-ground-on-new-300mm-semiconductor-wafer-fabrication-plant-in-sherman-texas/ |url-status=live }}</ref>
* In July 2022, [[SkyWater Technology|SkyWater]] announced plans to build an advanced $1.8&nbsp;billion semiconductor manufacturing facility with the government of [[Indiana]] and Purdue University to pursue CHIPS funding.<ref>{{Cite news |last=Lee |first=Jane Lanhee |date=July 20, 2022 |title=SkyWater unveils plans to build $1.8 bln chip facility in Indiana |language=en |work=Reuters |url=https://www.reuters.com/technology/skywater-unveils-plans-build-18-bln-chip-facility-indiana-2022-07-20/ |access-date=2023-01-05 |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162756/https://www.reuters.com/technology/skywater-unveils-plans-build-18-bln-chip-facility-indiana-2022-07-20/ |url-status=live }}</ref><ref>{{Cite web |date=July 20, 2022 |title=SkyWater Plans to Build Advanced $1.8B Semiconductor Manufacturing Facility in Partnership with the State of Indiana and Purdue University |url=https://www.businesswire.com/news/home/20220720005657/en/SkyWater-Plans-to-Build-Advanced-1.8B-Semiconductor-Manufacturing-Facility-in-Partnership-with-the-State-of-Indiana-and-Purdue-University |access-date=2023-01-05 |website=www.businesswire.com |language=en |archive-date=January 5, 2023 |archive-url=https://web.archive.org/web/20230105162756/https://www.businesswire.com/news/home/20220720005657/en/SkyWater-Plans-to-Build-Advanced-1.8B-Semiconductor-Manufacturing-Facility-in-Partnership-with-the-State-of-Indiana-and-Purdue-University |url-status=live }}</ref>

After the act passed:

*In September 2022, [[Wolfspeed]] announced it will build the world's largest [[silicon carbide]] semiconductor plant in [[Chatham County, North Carolina]]. By 2030, the company expects to occupy more than one million square feet of manufacturing space across 445 acres, at a cost of $1.3 billion.  The first phase of development is supported by about $1 billion in incentives from state, county, and local governments, and the company intends to apply for CHIPS act money.<ref>{{Cite news |date=September 9, 2022 |title=Wolfspeed Selects North Carolina for World's Largest Silicon Carbide Materials Facility |language=en-US |work=Wolfspeed press release |url=https://www.wolfspeed.com/company/news-events/news/wolfspeed-selects-north-carolina-for-worlds-largest-silicon-carbide-materials-facility/ |access-date=2023-04-17 |quote=In addition, the company hopes to apply for and obtain federal funding from the CHIPS and Science Act to accelerate the construction and build-out of the facility. |archive-date=April 17, 2023 |archive-url=https://web.archive.org/web/20230417210901/https://www.wolfspeed.com/company/news-events/news/wolfspeed-selects-north-carolina-for-worlds-largest-silicon-carbide-materials-facility/ |url-status=live }}</ref>
* In October 2022, [[Micron Technology]] announced it will invest $20&nbsp;billion in a new chip factory in [[Clay, New York]], to take advantages of the subsidies in the Act and signaled it could expand its investments to $100&nbsp;billion over 20 years.{{ r | Politico 20220809 }}<ref name="WaPo_2022-10-04">{{Cite news |title=Chipmaker Micron to build $20 billion N.Y. factory amid semiconductor boom |language=en-US |newspaper=Washington Post |url=https://www.washingtonpost.com/technology/2022/10/04/micron-chip-factory-new-york/ |access-date=2022-10-05 |issn=0190-8286 |quote=New York is giving Micron $5.5 billion in tax credits over the life of the project if the company meets certain employment targets. |archive-date=October 6, 2022 |archive-url=https://web.archive.org/web/20221006002244/https://www.washingtonpost.com/technology/2022/10/04/micron-chip-factory-new-york/ |url-status=live }}</ref><ref>{{Cite news |last=Lohr |first=Steve |date=October 4, 2022 |title=Micron Pledges Up to $100 Billion for Semiconductor Factory in New York |language=en-US |work=The New York Times |url=https://www.nytimes.com/2022/10/04/technology/micron-chip-clay-syracuse.html |access-date=2022-10-06 |issn=0362-4331 |archive-date=October 6, 2022 |archive-url=https://web.archive.org/web/20221006000024/https://www.nytimes.com/2022/10/04/technology/micron-chip-clay-syracuse.html |url-status=live }}</ref>  The state of New York granted the company $5.5&nbsp;billion in [[tax credits]] as an incentive to move there, if it meets employment promises.{{ r | WaPo_2022-10-04 }}
* In December 2022, TSMC announced the opening of the company's second chip plant in [[Arizona]], raising its investments in the state from $12&nbsp;billion to $40&nbsp;billion.<ref>{{Cite web |last=Kinery |first=Emma |title=TSMC to up Arizona investment to $40 billion with second semiconductor chip plant |url=https://www.cnbc.com/2022/12/06/tsmc-to-up-arizona-investment-to-40-billion-with-second-semiconductor-chip-plant.html |access-date=2023-01-05 |website=CNBC |date=December 6, 2022 |language=en |archive-date=January 6, 2023 |archive-url=https://web.archive.org/web/20230106112439/https://www.cnbc.com/2022/12/06/tsmc-to-up-arizona-investment-to-40-billion-with-second-semiconductor-chip-plant.html |url-status=live }}</ref> At that time, company officials said that construction costs in the U.S. were four to five times those in Taiwan (due to alleged higher costs of labor, red tape, and training) and that they were having difficulty finding qualified personnel (so some U.S. hires were sent for training in Taiwan for 12–18 months), so it will cost at least 50% more to make a TSMC chip in the United States than in Taiwan.<ref name="WSJ_2022-12-05">{{Cite news |last=Jie |first=Yang |date=2022-12-05 |title=TSMC's Arizona Chip Plant, Awaiting Biden Visit, Faces Birthing Pains – Taiwanese company cites high costs and shortage of skilled personnel as it pushes to open $12 billion factory next year |work=[[Wall Street Journal]] |url=https://www.wsj.com/articles/tsmcs-arizona-chip-plant-awaiting-biden-visit-faces-birthing-pains-11670236129?mod=Searchresults_pos2&page=1 |quote=Mr. Biden has been pushing to bring more high-tech manufacturing to the U.S. In August, he signed a law that includes $52 billion in direct aid for building semiconductor plants, which lawmakers viewed as key to ensuring American technology leadership and securing supply chains. ... Mr. Chang said the cost of making chips in Arizona may be at least 50% higher than in Taiwan. |access-date=March 3, 2023 |archive-date=March 3, 2023 |archive-url=https://web.archive.org/web/20230303023453/https://www.wsj.com/articles/tsmcs-arizona-chip-plant-awaiting-biden-visit-faces-birthing-pains-11670236129?mod=Searchresults_pos2&page=1 |url-status=live }}</ref><ref name="Noah_SS">{{Cite web |last=Smith |first=Noah |author-link=Noah Smith (writer) |date=2023-02-07 |title=The Build-Nothing Country – Stasis has become America's spoils system, and it can't go on. |url=https://noahpinion.substack.com/p/the-build-nothing-country?sd=pf |quote=TSMC, the Taiwanese company that recently agreed to build a big plant in Arizona, is running into major cost issues: |access-date=March 3, 2023 |archive-date=March 3, 2023 |archive-url=https://web.archive.org/web/20230303023452/https://noahpinion.substack.com/p/the-build-nothing-country?sd=pf |url-status=live }}</ref> It was also reported that the project faced significant delays due to TSMC engaging in routine wage theft and not hiring unionized subcontractors to carry out pipe-fitting and other construction work properly, among other issues<ref name="Harris Jun222023"/> such as withholding necessary skills training;<ref name="Butler 2023">{{cite web | last=Butler | first=Aaron | title=My View: TSMC should not blame US workers for Phoenix construction delays | website=Phoenix Business Journal | date=July 26, 2023 | url=https://www.bizjournals.com/phoenix/news/2023/07/27/tsmc-worker-shortage-phoenix.html | access-date=April 27, 2024}}</ref> while in January 2024, TSMC said it had delayed the opening from 2026 to 2028 in order to evaluate the Biden administration's shifting approach to tax credits,<ref name="Toh 2024">{{cite web | last=Toh | first=Michelle | title=TSMC says its $40 billion chip project in Arizona faces a further delay | website=CNN | date=January 19, 2024 | url=https://edition.cnn.com/2024/01/19/tech/tsmc-taiwan-arizona-project-delay-intl-hnk/index.html | access-date=April 27, 2024}}</ref> in April 2024, multiple TSMC employees, including trainees, also attested to the deep workplace cultural differences between Taiwanese and American engineers as a key factor in these delays.<ref name="Zhou 2024">{{cite web | last=Zhou | first=Viola | title=Inside TSMC's struggle to build a chip factory in the U.S. suburbs | website=Rest of World | date=April 23, 2024 | url=https://restofworld.org/2024/tsmc-arizona-expansion/ | access-date=April 27, 2024}}</ref>
* In February 2023, [[Texas Instruments]] announced an $11 billion investment in a new 300-mm wafer fab in [[Lehi, Utah]].<ref name="Clarke 2023">{{Cite web |last=Clarke |first=Kaitlyn |date=February 15, 2023 |title=Texas Instruments To Build New Chip Factory in Lehi, Bringing Hundreds of Jobs to the State |url=https://business.utah.gov/tax-credits/texas-instruments-to-build-new-chip-factory-in-lehi-bringing-hundreds-of-jobs-to-the-state/ |access-date=March 9, 2023 |website=business.utah.gov |archive-date=March 9, 2023 |archive-url=https://web.archive.org/web/20230309202429/https://business.utah.gov/tax-credits/texas-instruments-to-build-new-chip-factory-in-lehi-bringing-hundreds-of-jobs-to-the-state/ |url-status=live }}</ref>
* In February 2023, [[Integra Technologies]] announced a $1.8 billion proposal for expanding their Outsourced Semiconductor Assembly and Test (OSAT) operation in [[Wichita, Kansas]].<ref name="Wichita 2023">{{Cite web |date=February 2, 2023 |title=Governor Kelly Announces Integra Technologies to Invest $1.8B, Create Nearly 2,000 Jobs with Wichita Semiconductor Plant |url=https://www.kansascommerce.gov/2023/02/governor-kelly-announces-integra-technologies-to-invest-1-8b-create-nearly-2000-jobs-with-wichita-semiconductor-plant/ |access-date=March 9, 2023 |website=Kansas Department of Commerce |archive-date=March 7, 2023 |archive-url=https://web.archive.org/web/20230307092324/https://www.kansascommerce.gov/2023/02/governor-kelly-announces-integra-technologies-to-invest-1-8b-create-nearly-2000-jobs-with-wichita-semiconductor-plant/ |url-status=live }}</ref>
* In February 2023, EMP Shield announced a $1.9 billion proposal for a new campus in [[Burlington, Kansas]].<ref name="Burlington 2023">{{Cite web |date=February 20, 2023 |title=Governor Kelly Announces EMP Shield Plans to Build $1.9 Billion, 1,200-Job Computer Chip Manufacturing Facility in Coffey County |url=https://www.kansascommerce.gov/2023/02/governor-kelly-announces-emp-shield-plans-to-build-1-9-billion-1200-job-computer-chip-manufacturing-facility-in-coffey-county/ |access-date=March 9, 2023 |website=Kansas Department of Commerce |quote=EMP Shield will leverage state support to apply for CHIPS Act funding to see its plans to fruition. The project came together shortly after the CHIPS Act was signed into law last August. Additional stipulations include private-public partnerships as well as the involvement of higher education institutions. |archive-date=March 9, 2023 |archive-url=https://web.archive.org/web/20230309202433/https://www.kansascommerce.gov/2023/02/governor-kelly-announces-emp-shield-plans-to-build-1-9-billion-1200-job-computer-chip-manufacturing-facility-in-coffey-county/ |url-status=live }}</ref>
*In April 2023, [[Bosch (company)|Bosch]] announced it was acquiring TSI Semiconductors and investing $1.5 billion in upgrades geared toward making [[silicon carbide]] chips at the TSI plant in [[Roseville, California]].<ref name="Bellan 2023">{{cite web | last=Bellan | first=Rebecca | title=Bosch to acquire TSI Semiconductors to boost US chip production | website=TechCrunch | date=April 26, 2023 | url=https://techcrunch.com/2023/04/26/bosch-to-acquire-tsi-semiconductors-for-1-5b-to-boost-us-chip-production/ | access-date=May 24, 2023}}</ref>
*In June 2023, the French company [[Mersen]], a subsidiary of Le Carbone Lorraine, announced it would spend $81 million on an expansion project in [[Bay City, Michigan|Bay City]] and [[Greenville, Michigan]] due to Michigan's state implementation of the CHIPS Act.{{cn|date=October 2024}}

The following projects were announced after the Act's first anniversary:
* In November 2023, [[Amkor Technology]] announced they would apply for CHIPS Act funding to build a $2 billion chip packaging and testing facility in [[Peoria, Arizona]], motivated by their work with Apple and TSMC.<ref name="Amkor Technology 2023">{{cite web | title=Amkor Announces US Advanced Packaging and Test Facility |date=November 30, 2023| website=Amkor Technology | url=https://ir.amkor.com/news-releases/news-release-details/amkor-announces-us-advanced-packaging-and-test-facility | access-date=April 27, 2024}}</ref>
* In December 2023, [[BAE Systems]] announced they had received $35 million in national security-related grants from the Act to upgrade their [[Nashua, New Hampshire]] plant.<ref name="USDOC-Dec2023">{{cite web | title=Biden-Harris Administration and BAE Systems, Inc., Announce CHIPS Preliminary Terms to Support Critical U.S. National Security Project in Nashua, New Hampshire | website=U.S. Department of Commerce | date=December 11, 2023 | url=https://www.commerce.gov/news/press-releases/2023/12/biden-harris-administration-and-bae-systems-inc-announce-chips | access-date=March 23, 2024}}</ref><ref name="Gordon 2024">{{cite web | last=Gordon | first=Alex | title=CHIPS Incentives Awards | website=Semiconductor Industry Association | date=March 21, 2024 | url=https://www.semiconductors.org/chips-incentives-awards/ | access-date=March 23, 2024}}</ref>
* In January 2024, [[Microchip Technology]] announced they had received $162 million in similar grants to upgrade their [[Gresham, Oregon]] and [[Colorado Springs, Colorado]] plants.<ref name="NIST 2024-Jan">{{cite web | title=Biden-Harris Administration Announces CHIPS Preliminary Terms with Microchip Technology to Strengthen Supply Chain Resilience for America's Automotive, Defense, and Aerospace Industries | website=NIST | date=January 4, 2024 | url=https://www.nist.gov/news-events/news/2024/01/biden-harris-administration-announces-chips-preliminary-terms-microchip | access-date=March 23, 2024}}</ref><ref name="Gordon 2024"/>
* In February 2024, [[GlobalFoundries]] announced they had received $1.5 billion in similar grants to build a new fab in [[Malta, New York]] and upgrade their [[Essex Junction, Vermont]] plant.<ref name="NIST 2024-Feb">{{cite web | title=Biden-Harris Administration Announces Preliminary Terms with GlobalFoundries to Strengthen Domestic Legacy Chip Supply for U.S. Auto and Defense Industries | website=NIST | date=February 19, 2024 | url=https://www.nist.gov/news-events/news/2024/02/biden-harris-administration-announces-preliminary-terms-globalfoundries | access-date=March 23, 2024}}</ref><ref name="Gordon 2024"/>
* In March 2024, Intel announced they had received $8.5 billion from the Act to build four new highly advanced semiconductor fabs in [[Chandler, Arizona]] and [[New Albany, Ohio]] and upgrade plants in [[Hillsboro, Oregon]] and [[Rio Rancho, New Mexico]].<ref name="Lobosco Nilsen Klein 2024">{{cite web | last1=Lobosco | first1=Katie | last2=Nilsen | first2=Ella | last3=Klein | first3=Betsy | title=Biden makes biggest CHIPS announcement yet as he sells his economic wins to Arizona amid climate worries | website=CNN | date=March 20, 2024 | url=https://edition.cnn.com/2024/03/20/politics/chips-act-intel-funding-biden/index.html | access-date=March 23, 2024}}</ref><ref name="Intel 2024">{{cite web | title=US CHIPS Act Funding for Intel | website=Intel | date=March 21, 2024 | url=https://www.intel.com/content/www/us/en/newsroom/resources/us-chips-act-funding-intel.html | access-date=March 23, 2024}}</ref><ref name="Gordon 2024"/>
* In April 2024, TSMC announced they had received $6.6 billion to build a third fab in Arizona, with the intent to host the [[2 nm process]], and construction slated to begin in 2028.<ref name="Department of Commerce 2024 TSMC Announcement"/><ref name="Belanger 2024"/> The grant was finalized on November 15.<ref name="Swanson Ngo November 2024">{{cite web | last1=Swanson | first1=Ana | last2=Ngo | first2=Madeleine | title=Biden Cements TSMC Grant Before Trump Takes Over | website=The New York Times | date=November 15, 2024 | url=https://www.nytimes.com/2024/11/15/business/economy/tsmc-chips-grant-biden.html | access-date=November 15, 2024}}</ref>
* In April 2024, Samsung announced they had received $6.4 billion in grants from the Act to invest in additional capacity at its new Texas factory site, which had been revealed to be located in [[Taylor, Texas|Taylor]], and at their existing factory in nearby [[Austin, Texas|Austin]].<ref name="Department of Commerce 2024 Samsung announcement">{{cite web | title=Biden-Harris Administration Announces Preliminary Terms with Samsung Electronics to Establish Leading-Edge Semiconductor Ecosystem in Central Texas | website=U.S. Department of Commerce | date=April 15, 2024 | url=https://www.commerce.gov/news/press-releases/2024/04/biden-harris-administration-announces-preliminary-terms-samsung | access-date=April 27, 2024}}</ref>
* In April 2024, [[Micron Technologies]] announced a federal CHIPS and Science Act grant of $6.1 billion toward building a new semiconductor chip manufacturing campus in [[Clay, New York|Clay]], [[New York (state)|New York]], a northern [[suburb]] of [[Syracuse, New York|Syracuse]] in [[Upstate New York]], along with a new leading-edge fab in [[Boise, Idaho]]; it also announced it would progress its worldwide investments by $100 billion.<ref name="The White House April 25, 2024">{{cite web | author=The White House | title=FACT SHEET: President Biden Announces up to $6.1 Billion Preliminary Agreement with Micron under the CHIPS and Science Act | website=The White House | date=April 25, 2024 | url=https://bidenwhitehouse.archives.gov/briefing-room/statements-releases/2024/04/25/fact-sheet-president-biden-announces-up-to-6-1-billion-preliminary-agreement-with-micron-under-the-chips-and-science-act/ | access-date=April 27, 2024}}</ref><ref name=MicronUpstateNewYorkCHIPSCampus>{{cite web|url=https://www.npr.org/2024/04/25/1246888804/biden-chips-syracuse-micron|title=Biden is giving $6 billion to Micron for a semiconductor project in Upstate New York|author=Susan Davis|publisher=[[NPR]]|date=April 25, 2024|access-date=April 26, 2024}}</ref>
* In May 2024, the Biden administration and Polar Semiconductor agreed to establish a new foundry creating 160 new jobs in [[Bloomington, Minnesota]] using $120 million in CHIPS Act funding.<ref name="NIST Polar">{{cite web | title=Biden-Harris Administration Announces Preliminary Terms with Polar Semiconductor to Establish an Independent American Foundry | website=NIST | date=May 13, 2024 | url=https://www.nist.gov/news-events/news/2024/05/biden-harris-administration-announces-preliminary-terms-polar-semiconductor | access-date=June 26, 2024}}</ref>
* In May 2024, the administration and [[SK Group]] subsidiary Absolics announced an agreement to build glass wafers in a new factory creating 1,200 new jobs in [[Covington, Georgia]] using $75 million in CHIPS Act money.<ref name="NIST Absolics">{{cite web | title=Biden-Harris Administration Announces Preliminary Terms with Absolics to Support Development of Glass Substrate Technology for Semiconductor Advanced Packaging | website=NIST | date=May 23, 2024 | url=https://www.nist.gov/news-events/news/2024/05/biden-harris-administration-announces-preliminary-terms-absolics-support | access-date=June 26, 2024}}</ref>
* In June 2024, the administration and [[Rocket Lab]] announced an agreement to expand production of [[solar cell]]s in [[Albuquerque, New Mexico]] using $23.9 million in CHIPS Act money.<ref name="NIST Rocket Lab">{{cite web | title=Biden-Harris Administration Announces Preliminary Terms with Rocket Lab to Expand Production of Compound Semiconductors that Power Spacecrafts and Satellites | website=NIST | date=June 11, 2024 | url=https://www.nist.gov/news-events/news/2024/06/biden-harris-administration-announces-preliminary-terms-rocket-lab-expand | access-date=June 26, 2024}}</ref>
* In January 2025, the Department of Commerce announced a $325 million award under the Act to [[Hemlock Semiconductor]] to help build a new [[polysilicon]] crystal factory in [[Hemlock, Michigan]].<ref name="DOC award 2025">{{cite web | title=Department of Commerce Announces CHIPS Incentives Award with Hemlock Semiconductor to Help Secure U.S. Production Capacity of Semiconductor-Grade Polysilicon | website=U.S. Department of Commerce | date=January 7, 2025 | url=https://www.commerce.gov/news/press-releases/2025/01/department-commerce-announces-chips-incentives-award-hemlock | access-date=February 1, 2025}}</ref>

On May 13, 2024, Bloomberg News found a total of $32.8 billion had been allocated from the CaSA's $39 billion fund, with federal loans and tax credits set to reach $75 billion. [[Boston Consulting Group]] and the [[Semiconductor Industry Association]] estimated that by 2033, the United States would attain 28 percent of the world's market for advanced logic chips, and its share of the world's fabs would grow to 14 percent of the total (compared to a baseline scenario of 8 percent if the Act had not passed).<ref name="Hawkins King Deutsch Nohara Gao 2024">{{cite web | title=Global Chips Battle Intensifies With $81 Billion Subsidy Surge|last1=Hawkins|first1=Mackenzie|last2=King|first2=Ian|last3=Deutsch|first3=Jillian|last4=Yoshiaki|first4=Nohara|last5=Gao|first5=Yuan|date=May 13, 2024 | website=Bloomberg | url= https://www.bloomberg.com/news/features/2024-05-12/chip-technology-spending-gets-81-billion-boost-in-china-rivalry | access-date=May 27, 2024}}</ref>

===Tech Hubs===
On October 23, 2023, the Biden administration announced that it directed the [[Economic Development Administration]] to focus on 31 areas (across 32 states and [[Puerto Rico]]) that it designated "Tech Hubs", for the purposes of spreading development evenly around the country, and incubating advanced technology and research. The Tech Hubs' organizers competed for a total of about $500 million in implementation grants, the first such appropriation out of a budgeted $10 billion over the next five years. The Biden administration also gave out "Strategy Development Grants" to 29 consortia of businesses, labor unions and governments in areas that lost out, encouraging further organizational improvements before trying again to become a Tech Hub.<ref name="U.S. Department of Commerce October 2023">{{cite web | title=FACT SHEET: Biden-⁠Harris Administration Announces 31 Regional Tech Hubs to Spur American Innovation, Strengthen Manufacturing, and Create Good-Paying Jobs in Every Region of the Country | website=U.S. Department of Commerce | date=October 23, 2023 | url=https://www.commerce.gov/news/fact-sheets/2023/10/fact-sheet-biden-harris-administration-announces-31-regional-tech-hubs | access-date=October 24, 2023}}</ref><ref name="U.S. Economic Development Administration 2023">{{cite web | title=Regional Technology and Innovation Hubs (Tech Hubs) | website=U.S. Economic Development Administration | date=October 23, 2023 | url=https://www.eda.gov/funding/programs/regional-technology-and-innovation-hubs | access-date=October 24, 2023}}</ref><ref name="Shepardson 2023">{{cite web | last=Shepardson | first=David | title=US picks 31 regional hubs to spur tech innovation | website=Reuters | date=October 23, 2023 | url=https://www.reuters.com/technology/biden-administration-picks-31-regional-tech-hubs-spur-us-innovation-2023-10-23/ | access-date=October 24, 2023}}</ref>

On July 2, 2024, the Biden administration announced that it would award $504 million in additional grants to 12 of the Tech Hubs to further their research. It also announced that the Tech Hub program had already attracted $4 billion in private sector investments.<ref name="EDA 2024-07-02">{{cite web | title=Biden-Harris Administration Announces Next Funding Round of $504 Million for 12 Tech Hubs Across America | website=U.S. Economic Development Administration | date=July 2, 2024 | url=https://www.eda.gov/news/press-release/2024/07/02/biden-harris-administration-announces-next-funding-round-504-million | access-date=July 8, 2024}}</ref>

===Macroeconomic impact===
Estimates of the results of the CHIPS Act vary. The trade group [[Semiconductor Industry Association]], which analyzed announced investments from May 2020 to December 2022, claimed the CHIPS Act had led to more than 50 projects worth more than $200 billion that would create 44,000 jobs.<ref name="Ravi Casanova 2022">{{Cite web |last1=Ravi |first1=Sarah |last2=Casanova |first2=Robert |date=December 14, 2022 |title=The CHIPS Act Has Already Sparked $200 Billion in Private Investments for U.S. Semiconductor Production |url=https://www.semiconductors.org/the-chips-act-has-already-sparked-200-billion-in-private-investments-for-u-s-semiconductor-production/ |access-date=May 1, 2023 |website=Semiconductor Industry Association |archive-date=March 30, 2023 |archive-url=https://web.archive.org/web/20230330085952/https://www.semiconductors.org/the-chips-act-has-already-sparked-200-billion-in-private-investments-for-u-s-semiconductor-production/ |url-status=live }}</ref> By the count of policy researcher Jack Conness, the CHIPS Act led to 37 projects worth $272 billion and a predicted 36,300 jobs {{as of|2024|11|14|df=US|lc=y}};  when considered together with [[Inflation Reduction Act]] investments, the total comes out to 218 projects worth $388 billion creating 135,800 jobs.<ref name="Conness 2023">{{cite web | title=Inflation Reduction Act (IRA) and CHIPS and Science Act Investments | website=Jack Conness | date=November 14, 2024 | url=https://www.jackconness.com/ira-chips-investments | access-date=November 15, 2024}}</ref>{{Update after|2024|12|31}}

Arizona is in line for the largest individual investment (TSMC's $65 billion investment, predicted to create 6,000 jobs), the most total jobs created (above 11,000) and the most dollars overall ($97.5 billion). Counties that voted for Biden in 2020 received more dollars from the Act ($227.9 million) than counties that voted for Donald Trump ($44 million).<ref name="Conness 2023"/>{{Update after|2024|12|31}}<ref>{{Cite web|url=https://www.motherjones.com/politics/2023/04/house-republicans-debt-ceiling-clean-energy-ira-irs-joe-biden/|title=House Republicans Are Playing Debt-Ceiling Russian Roulette|last=Mechanic|first=Michael|website=[[Mother Jones (magazine)|Mother Jones]]|date=April 27, 2023|access-date=May 6, 2023}}</ref><ref name="Jenkins 2023">{{Cite web|url=https://www.motherjones.com/environment/2023/04/electrify-everything-scope-data/|first=Jesse D.|last=Jenkins|title=What "Electrify Everything" Actually Looks Like|date=May 2023|access-date=May 8, 2023|website=[[Mother Jones (magazine)|Mother Jones]]}}</ref><ref name="Dayen 2023">{{cite web | last=Dayen | first=David | authorlink=David Dayen | title=A Liberalism That Builds Power | website=[[The American Prospect]] | date=May 25, 2023 | url=https://prospect.org/api/content/4746efa0-fa57-11ed-a84c-12163087a831/ | access-date=May 26, 2023}}</ref><ref name="Podesta BPC address 2023">{{cite web | author=[[John Podesta]] | title=Remarks as Prepared for Delivery Before the Bipartisan Policy Center by Senior Advisor John Podesta on the Biden-Harris Administration's Priorities for Energy Infrastructure Permitting Reform | website=The White House | date=May 10, 2023 | url=https://bidenwhitehouse.archives.gov/briefing-room/speeches-remarks/2023/05/10/remarks-as-prepared-for-delivery-by-senior-advisor-john-podesta-on-the-biden-harris-administrations-priorities-for-energy-infrastructure-permitting-reform/ | access-date=June 6, 2023}}</ref>

In December 2023, the ''[[Financial Times]]'' found the IRA and CaSA together catalyzed over $224 billion in investments and over 100,000 new jobs by the preceding July.<ref name="FT 2023">{{cite AV media | title=How Biden's Inflation Reduction Act changed the world| publisher=YouTube|time=3:27|location=London, UK|people=Financial Times| url=https://www.youtube.com/watch?v=cfaubxeS5HU |date=December 6, 2023| access-date=January 3, 2024}}</ref>

According to the [[New Democrats (United States)|New Democrat]]-linked think tank [[Center for American Progress]], the CHIPS and Science Act, the Inflation Reduction Act, and the [[Infrastructure Investment and Jobs Act]] have together led to more than 35,000 public and private investments.<ref name="CAP 2023">{{cite web | last1=Ragland|first1=Will|last2=Koronowski|first2=Ryan|last3=Simhoni | first3=Shanee | title=Biden Administration Investment Tracker | website=Center for American Progress | date=June 20, 2023 | url=https://www.americanprogress.org/article/investment-tracker/ | access-date=June 29, 2023}}</ref> The Biden administration itself claimed that {{as of|2025|01|10|lc=y|df=US}}, the IIJA, CaSA, and IRA together catalyzed $1 trillion in private investment (including $449 billion in electronics and semiconductors, $184 billion in electric vehicles and batteries, $215 billion in clean power, $93 billion in clean energy tech manufacturing and infrastructure, and $51 billion in heavy industry) and over $756.2 billion in public infrastructure spending (including $99 billion in energy aside from tax credits in the IRA).<ref name="Invest.gov 2025">{{cite web | title=Investing In America | website=The White House | date=January 10, 2025 | url=https://bidenwhitehouse.archives.gov/invest/?utm_source=invest.gov | access-date=January 10, 2025}}</ref>{{update after|2025|01|30}} 

===California===
====Manufacturing====
In [[California]], where the semiconductor industry was founded in [[Silicon Valley]], experts say that it is very unlikely that any new manufacturing facilities will be built, due to tight regulations, high costs of land and electricity, and unreliable water supplies.<ref name="SJMN_2022-09-04">{{Cite news |last=Krieger |first=Lisa |date=2022-09-04 |title=The U.S. is bringing chip-making home. Is California ready? – What the $52.7 billion CHIPS Act might mean for the birthplace of technology |work=[[San Jose Mercury News]] |url=https://www.mercurynews.com/2022/09/04/the-u-s-is-bringing-chip-making-home-is-california-ready/ |quote=But experts say that new plants are unlikely to be erected here. Manufacturing is stifled by several factors: high real-estate costs, unreliable water, expensive electric bills and stiff regulations. In general, manufacturing has plummeted in California. Since 1990, the state has lost a third of its factory jobs. |access-date=March 14, 2023 |archive-date=March 14, 2023 |archive-url=https://web.archive.org/web/20230314005744/https://www.mercurynews.com/2022/09/04/the-u-s-is-bringing-chip-making-home-is-california-ready/ |url-status=live }}</ref> These factors have contributed to the state's 33% decline in manufacturing jobs since 1990.{{ r | SJMN_2022-09-04 }}

====Research====
In May 2023, [[Applied Materials]] announced it would build a new collaborative advanced research and development center (distinct from traditional fabs) named the "EPIC Center", short for "Equipment and Process Innovation and Commercialization Center", by 2026, next to its existing facility in [[Sunnyvale, California]]. The first known CHIPS Act-linked investment in Silicon Valley, the EPIC Center is worth $4 billion and is projected to create 2,000 jobs.<ref name="Applied Materials 2023">{{cite web | title=Applied Materials Launches Multibillion-Dollar R&D Platform in Silicon Valley to Accelerate Semiconductor Innovation | website=Applied Materials | date=May 22, 2023 | url=https://ir.appliedmaterials.com/news-releases/news-release-details/applied-materials-launches-multibillion-dollar-rd-platform | access-date=August 16, 2023}}</ref><ref name="Leggate 2023">{{cite web | last=Leggate | first=James | title=Applied Materials to Build Chip R&D Center Costing Up to $4B | website=Engineering News-Record | date=May 24, 2023 | url=https://www.enr.com/articles/56516-applied-materials-to-build-chip-r-and-d-center-costing-up-to-4b | access-date=August 16, 2023}}</ref><ref name="Lee Nellis 2023"/>

==Implementation==
===Underfunding of research agencies===
In June 2023, after the passage of the [[Fiscal Responsibility Act of 2023|debt-ceiling deal]], [[Federation of American Scientists]] analysts Matt Hourihan and Melissa Roberts Chapman and [[Brookings Institution]] analyst Mark Muro noted that the [[Consolidated Appropriations Act, 2023]] had underfunded three key agencies to the Science Act (the NSF, the DOE's Office of Science, and NIST) by $2.7 billion, or 12 percent compared to the Act's intent, and that the President's proposal for the [[2024 United States federal budget]] would likely shortchange them by $5.1 billion, or 19 percent compared to the Act's intent. Upon reviewing the effects the shortfalls would bring on defense policy and the economy, they recommended that more science and technology spending be moved into the mandatory category, as had been done with some semiconductor spending.<ref name="Brookings 2023">{{cite web | title=The bold vision of the CHIPS and Science Act isn't getting the funding it needs | website=Brookings |last1=Hourihan|first1=Matt|last2=Roberts Chapman|first2=Melissa|last3=Muro|first3=Mark| date=June 29, 2023 | url=https://www.brookings.edu/articles/the-bold-vision-of-the-chips-and-science-act-isnt-getting-the-funding-it-needs/ | access-date=March 29, 2024}}</ref>

In March 2024, ''[[Politico]]'' contributor Christine Mui cited Hourihan in detailing how the Science Act interacted with later spending deals. In the actual 2024 budget, the NSF was underfunded by 42 percent compared to the Act's authorization and by 11 percent compared to its budget request; the Department of Energy's Office of Science was underfunded by 13 percent compared to the Act's authorization, while the [[Economic Development Administration]]'s regional hubs program was funded with $41 million ($541 million since 2022) against an annual authorization of $2 billion ($4 billion from 2022); NIST's budget, for which the 2023 Appropriations Act appropriated $1.564 billion and the Science Act authorized $1.562 billion, saw an 11 percent cut and NASA's budget fell 9 percent short of its request.<ref name="Brookings 2023"/><ref name="Mui 2024">{{cite web | last=Mui | first=Christine | title=How Congress defanged Biden's big science push | website=POLITICO | date=March 9, 2024 | url=https://www.politico.com/news/2024/03/09/biden-touted-science-funding-but-congress-hollowed-out-his-promise-00146065 | access-date=March 29, 2024}}</ref><ref name="Federal News Network 2024">{{cite web |last=Friedman|first=Drew| title=6-bill minibus rewards some agencies, while slashing budgets for others | website=Federal News Network | date=March 5, 2024 | url=https://federalnewsnetwork.com/budget/2024/03/6-bill-minibus-rewards-some-agencies-while-slashing-budgets-for-others/?readmore=1 | access-date=April 30, 2024}}</ref> As of April 2024, CHIPS research agencies have been underfunded by over $8 billion.<ref>{{cite web | title=CHIPS and Science Funding Gaps Continues to Stifle Scientific Competitiveness | website=Federation of American Scientists | date=April 8, 2024| url=https://fas.org/publication/chips-funding-gaps-april/ }}</ref>

In April, Commerce Secretary Raimondo revealed the CHIPS Program Office would no longer fund commercial research and development investments via the Act's $39 billion fund, due to high demand totaling $70 billion, and said applicants must seek other sources of R&D funding.<ref name="AIP 2024">{{cite web | title=CHIPS Program Suspends Plans for R&D Facility Funds | website=AIP | date=April 1, 2024 | url=https://ww2.aip.org/fyi/chips-program-suspends-plans-for-r-d-facility-funds | access-date=April 27, 2024}}</ref><ref name="Shepardson Alper 2024">{{cite web | last1=Shepardson | first1=David| last2=Alper |first2=Alexandra|title=California Democrats urge Biden not to scrap chips R&D funding | website=Reuters | date=1 April 2024 | url=https://www.reuters.com/world/us/california-democrats-urge-biden-not-scrap-chips-rd-funding-2024-04-01/ | access-date=27 April 2024}}</ref>

===National Semiconductor Technology Center===
The Act creates a National Semiconductor Technology Center to perform advanced research and development on semiconductors. In order to implement it, the Department of Commerce created a nonprofit [[public–private partnership]] within NIST called [https://natcast.org/ Natcast] in April 2023,<ref name="Natcast 2024">{{cite web | title=Mission | website=Natcast | date=April 13, 2024 | url=https://natcast.org/about | access-date=May 1, 2024}}</ref> putting out a call for volunteers to select who will serve as board members.<ref>{{CodeFedReg|88|25378}}</ref> In June, the selection committee was announced as [[Janet Foutty]] of Deloitte, [[John L. Hennessy]] of Alphabet, [[Jason Gaverick Matheny]] of RAND Corporation, Don Rosenberg of the University of California, San Diego, and Brenda Darden Wilkerson of AnitaB.org.<ref name="NSTC Selection Committee announcement 2023">{{cite web | title=CHIPS for America Announces Selection Committee for the Board of Trustees of the National Semiconductor Technology Center | website=NIST | date=June 20, 2023 | url=https://www.nist.gov/news-events/news/2023/06/chips-america-announces-selection-committee-board-trustees-national | access-date=May 1, 2024}}</ref> In September, the selection committee's activities were closed.<ref>{{CodeFedReg|88|57102}}</ref> By the White House's announcement date, the board of trustees was finalized as Robin Abrams of Analog Devices Inc., [[Craig Barrett (chief executive)|Craig Barrett]] of Intel, Reggie Brothers of the MIT Lincoln Lab, [[Nick Donofrio]] of IBM, [[Donna Dubinsky]] of Palm and Handspring, and Erica Fuchs of Carnegie Mellon University.<ref name="Natcast Board 2024">{{cite web | title=NSTC Governance | website=Natcast | date=February 9, 2024 | url=https://natcast.org/nstc-governance | access-date=May 1, 2024}}</ref> They selected [[Deirdre Hanford]] of Synopsys to serve as Natcast's CEO.<ref name="Natcast Board 2024"/> {{as of|2024|October|24|df=US}}, Natcast was promised at least $5 billion from the Biden administration, and has established a Workforce Center of Excellence and "Community of Interest",<ref name="The White House CHIPS announcement February 2024">{{cite web | author=The White House | title=FACT SHEET: Biden-Harris Administration Announces Over $5 Billion from the CHIPS and Science Act for Research, Development, and Workforce | website=The White House | date=February 9, 2024 | url=https://bidenwhitehouse.archives.gov/briefing-room/statements-releases/2024/02/09/fact-sheet-biden-harris-administration-announces-over-5-billion-from-the-chips-and-science-act-for-research-development-and-workforce/ | access-date=May 1, 2024}}</ref> beginning its first $100 million grant competition in the summer, with a focus on improving artificial intelligence and making cutting-edge research cheaper.<ref name="Natcast April 1, 2024 news update">{{cite web | title=CHIPS for America and Natcast to Give Update on the National Semiconductor Technology Center | website=Natcast | date=April 1, 2024 | url=https://natcast.org/chips-for-america-and-natcast-to-give-update-on-the-national-semiconductor-technology-center | access-date=May 1, 2024}}</ref> It has prepared its strategic plan for fiscal years 2025-27, outlining goals that range from scaling up multi-process wafer access to computer-aided design of chips to organizing the Workforce Center of Excellence.<ref>{{cite web|date=October 24, 2024|title=Natcast FY25-27 Strategic Plan|url= https://natcast-1e229.kxcdn.com/assets/uploads/2024/10/NSTC-Strategic-Plan-FY-2025-2027fweb.pdf|access-date=October 24, 2024|website=Natcast}}</ref>

The current headquarters of Natcast are in a strip mall in [[Portola Valley, California]].<ref name="Natcast Terms of Use 2024">{{cite web | title=Natcast Terms of Use | website=Natcast | date=April 5, 2024 | url=https://natcast.org/terms-of-use | access-date=May 1, 2024}}</ref> States that have received huge amounts of semiconductor investments such as New York, Ohio, Arizona and Texas are vying {{as of|2024|May|lc=y}} to have the headquarters relocated in them.<ref name="Rulison 2023">{{cite news | last=Rulison | first=Larry | title=Could a federal chip lab be anchored in Albany? | website=Times Union | date=November 14, 2023 | url=https://www.timesunion.com/business/article/federal-chip-lab-anchored-albany-18487970.php | access-date=May 1, 2024}}</ref> In October, the first flagship NSTC site was announced, an [[extreme ultraviolet lithography]] research lab at the [[College of Nanotechnology, Science, and Engineering|Albany Nanotech Complex]] in [[Albany, New York]].<ref name="IBM 2024">{{cite web | last=Murphy | first=Mike | title=The National EUV Accelerator comes to Albany | website=IBM Research | date=October 31, 2024 | url=https://research.ibm.com/blog/euv-center-albany-nstc | access-date=October 31, 2024}}</ref> The second flagship site was announced the next day as a chip design lab in [[Sunnyvale, California]].<ref name="Sunnyvale">{{cite web | title=Biden-Harris Administration Announces Sunnyvale, Ca, as Expected Location for Second CHIPS for America R&D Flagship Facility | website=Natcast | date=November 1, 2024 | url=https://natcast.org/biden-harris-announces-second-chips-flagship-facility | access-date=November 1, 2024}}</ref> In January 2025, the third flagship site, a lab for chip packaging, was announced as [[Arizona State University Research Park]] in [[Tempe, Arizona|Tempe]].<ref name="ASU Research Park">{{cite web | title=Third CHIPS for America R&D Flagship Facility Announced | website=Natcast | date=January 6, 2025 | url=https://natcast.org/third-chips-for-america-rd-flagship-facility-announced | access-date=January 15, 2025}}</ref>

Arrian Ebrahaimi and Jordan Schneider, writing for the [[Institute for Progress]], recommended the NSTC be structured with more centralization, work quickly and ambitiously to address market failures and externalities in chip research, and follow the management model of the similar Belgian company [[IMEC]].<ref name="Ebrahimi Schneider Hwang Watney 2024">{{cite web | last1=Ebrahimi | first1=Arrian | last2=Schneider | first2= Jordan | last3=Hwang | first3=Tim | last4=Watney | first4=Caleb | last5=Richards | first5=Adin | title=How to Make the NSTC a Moonshot Success | website=Institute for Progress | date=April 22, 2024 | url=https://ifp.org/how-to-make-the-nstc-a-moonshot-success/ | access-date=May 1, 2024}}</ref>

===Metrology, packaging and digital twins initiatives===
The Biden administration will also invest at least $200 million<ref name="The White House CHIPS announcement February 2024"/> in a new Manufacturing USA Institute under the Act, focused on spreading the use of [[digital twin]]s in semiconductor design,<ref>{{CodeFedReg|89|6506}}</ref> and $300 million<ref name="The White House CHIPS announcement February 2024"/> in the NIST Advanced Packaging Manufacturing Program, focused on researching new [[Substrate (materials science)|substrate]] chemistries for [[Integrated circuit packaging|semiconductor packaging]].<ref>{{CodeFedReg|89|6508}}</ref> The Commerce Department also awarded $100 million to 29 research projects in advanced [[metrology]] by February,<ref name="The White House CHIPS announcement February 2024"/> and released a new notice of opportunity for metrology research funding on April 16.<ref name="SBIR.gov 2024">{{cite web | title=FY2024 Small Business Innovation Research (SBIR) Program for CHIPS for America – CHIPS Metrology | website=SBIR.gov | date=April 16, 2024 | url=https://www.sbir.gov/node/2609701 | access-date=May 1, 2024}}</ref>

===Rule on business deals with countries of concern===
In September 2023, the Commerce Department finalized its rule prohibiting Act funding recipients from expanding their manufacturing presence by more than 5 percent for advanced and 10 percent for mid-market chips through deals worth $100,000 or more, and brokering licensing agreements for technology transfers in China and other "countries of concern", as well as setting out how the Secretary would be notified of violations.<ref>{{CodeFedReg|15|231}}</ref><ref name="Gupta 2024">{{cite web | last=Gupta | first=Sourabh | title=Biden-Xi Woodside Summit and the Slow Rehabilitation of US-PRC Ties | website=Comparative Connections | date=January 15, 2024 | url=https://cc.pacforum.org/2024/01/biden-xi-woodside-summit-and-the-slow-rehabilitation-of-us-prc-ties/ | access-date=April 4, 2024}}</ref>

===Stock buybacks and economic equality===
In October 2022, Senators [[Elizabeth Warren]] and [[Tammy Baldwin]] and Representatives [[Sean Casten]], [[Jamaal Bowman]], [[Pramila Jayapal]] and [[Bill Foster (politician)|Bill Foster]] sent a letter to Secretary Raimondo urging her to detail how the Commerce Department would enforce the law's provisions preventing companies from using CHIPS Act money directly on stock buybacks (they noted the law does not prevent recipients from using the money to free up their own funds for stock buybacks), as well as whether the department would claw back misused funds and resolve conflicts of interest.<ref name="Warren 2022">{{cite letter|url=https://www.baldwin.senate.gov/imo/media/doc/letter_re_chips_stock_buyback.pdf|date=October 4, 2022|access-date=April 4, 2024|subject= Prevent Stock Buybacks by Corporations That Receive CHIPS Act Funds}}</ref> On February 10, 2023, they and Senators Bernie Sanders and [[Ed Markey]] repeated many of the same points to Michael Schmidt, head of the Department's CHIPS Program Office, and urged even stronger action, outlining what regulatory crackdowns the law authorizes the department to do.<ref>{{cite letter|url=http://ct.symplicity.com/t/wrn/8200478f9d5f97023b430d497a0b8201/2665571418/realurl=https://www.warren.senate.gov/imo/media/doc/2023.02.10%20Follow%20Up%20Letter%20re%20CHIPS%20Stock%20Buybacks.pdf|date=February 10, 2023|last=Warren|first=Elizabeth|recipient=Michael Schmidt|subject=CHIPS Funds Should Not Be Used to Enrich Corporate Executives and Shareholders at Taxpayers’ Expense|access-date=April 4, 2024}}</ref>

In January 2024, Warren and Jayapal wrote to Secretary Raimondo, Schmidt, and CHIPS Program Office investment head Todd Fisher expressing their concerns over who was staffing the main funds allocator, which reporting from ''[[The Wall Street Journal]]'' and [[Bloomberg News]] the previous summer and fall had found to be a small collection of elite bankers, consultants and lobbyists from Wall Street firms with potential conflicts of interest.<ref name="Warren 2024a">{{cite letter|url=https://www.warren.senate.gov/imo/media/doc/2024.01.09%20Letter%20to%20Commerce%20re.%20CHIPS%20revolving%20door.pdf|subject=CHIPS revolving door|date=January 9, 2024|last=Warren|first=Elizabeth|recipient=Gina Raimondo|access-date=April 4, 2024}}</ref><ref>{{cite web|website=The Wall Street Journal|title=Why Washington Went to Wall Street to Revive the U.S. Chips Industry|first=Yuka|last=Hayashi|date=August 15, 2023|url=https://www.wsj.com/politics/policy/why-the-white-house-went-to-wall-street-to-revive-the-u-s-chips-industry-fe0a0aac|access-date=April 4, 2024}}</ref><ref name="Bloomberg 2023">{{cite web|website=Bloomberg News|title=Ex-Wall Streets Help Washington Divvy Up $100 Billion to Win the Global Chip Race|first1=Mackenzie|last1=Hawkins|first2=Jenny|last2=Leonard|first3=Ian|last3=King|first4=Eric|last4=Martin|date=September 25, 2023|url=https://www.bloomberg.com/news/articles/2023-09-25/chips-act-commerce-taps-wall-streeters-to-help-shape-semiconductor-deals |access-date=April 4, 2024}}</ref>

At the time [[BAE Systems]] was announced to be receiving a CHIPS Act grant, Warren and Casten wrote to CEO Tom Arsenault that they wanted BAE Systems to conform with the spirit of the Act, noting that BAE had engaged in $9.4 billion in stock buybacks the previous year.<ref>{{Cite letter|url=https://www.warren.senate.gov/imo/media/doc/2024.02.06%20Letter%20to%20BAE%20Systems%20re.%20CHIPS%20award1.pdf|date=February 6, 2024|last=Warren|first=Elizabeth|subject=CHIPS awards and refraining from stock buybacks|recipient=Tom Arsenault|access-date=April 4, 2024}}</ref> Journalist [[Les Leopold]] later cited the letter and [[Chris Van Hollen]]'s statements on the subject to denounce Intel's engagement in similar practices netting them nearly $153 billion since 1990 and their recent mass layoffs, following the $8.5 billion grant receipt announcement.<ref name="Leopold 2024">{{cite web | last=Leopold | first=Les | title=Intel Brags of $152 Billion in Stock Buybacks Over Last 35 Years. So Why Does It Need $8 Billion Subsidy? | website=Common Dreams | date=2024-03-27 | url=https://www.commondreams.org/opinion/intel-subsidy-chips-act-stock-buyback | access-date=2024-04-04}}</ref>

===Grant delays===
{{As of|January 2024}} only two small grants had been awarded, neither for production of the most advanced chips.{{ r | WSJ_2024-01-27 }}

One hurdle delaying the release of award monies is the [[National Environmental Policy Act]], which requires that projects receive federal approvals before any funds can be dispersed. A federal government analysis cited by ''[[The Wall Street Journal]]'' found that these approvals, from 2013 to 2018, have taken an average of 4.5 years to receive.<ref name=WSJ_2024-01-27 >{{ cite news | url=https://www.wsj.com/politics/policy/eager-for-economic-wins-biden-to-announce-billions-for-advanced-chips-7e341e30 | title=Eager for Economic Wins, Biden to Announce Billions for Advanced Chips – Industry, lawmakers worry semiconductor production could take years because of negotiations, permitting and worker shortages | last=Hayashi | first=Yuka | newspaper=[[Wall Street Journal]] | date=2024-01-27 | quote=More than 170 firms have applied but, to date, just two tiny grants have been made, to makers of less advanced chips. ... The most immediate threat to the timely construction is the National Environmental Policy Act, which requires large federally funded projects to pass environmental review before grants are released, regardless of whether they have already obtained state and local government permits. Full NEPA reviews took an average of 4.5 years between 2013 and 2018, according to a federal government report. Critics say each year of delay adds roughly 5% to the construction cost of a chip plant. }}</ref>

In April 2024, Commerce Secretary Gina Raimondo told CNBC at Samsung's grant announcement on the Taylor fab site that she expected all CHIPS Act grant money to be awarded by the end of the year, with most of the remaining funding going to equipment suppliers, [[Wafer (electronics)|wafer]] makers, and chemical engineering firms.<ref name="Cassella 2024">{{cite web | last=Cassella | first=Megan | title=Raimondo: Commerce Dept. will allocate all of the CHIPS Act grant money this year | website=CNBC | date=April 15, 2024 | url=https://www.cnbc.com/2024/04/15/gina-raimondo-commerce-will-spend-all-chips-act-money-this-year.html | access-date=April 27, 2024}}</ref> However, by mid-November 2024, only [[Polar Semiconductor]] and TSMC's grant deals had been finalized by the Biden administration.<ref name="Swanson Ngo November 2024">{{cite web | last1=Swanson | first1=Ana | last2=Ngo | first2=Madeleine | title=Biden Cements TSMC Grant Before Trump Takes Over | website=The New York Times | date=November 15, 2024 | url=https://www.nytimes.com/2024/11/15/business/economy/tsmc-chips-grant-biden.html | access-date=November 15, 2024}}</ref> This changed by the end of the month, as the Biden administration finalized its fifth and sixth grant agreements, with GlobalFoundries for its New York and Vermont projects, and with Intel for its Arizona, New Mexico, Ohio, and Oregon projects.<ref name="Shepardson 2024a">{{cite web | last=Shepardson | first=David | title=US finalizes $1.5 billion chips award for GlobalFoundries to expand production | website=Reuters | date=November 20, 2024 | url=https://www.reuters.com/technology/us-finalizes-15-billion-chips-award-globalfoundries-expand-production-2024-11-20/ | access-date=November 26, 2024}}</ref><ref name="Shepardson 2024b">{{cite web | last=Shepardson | first=David | title=US finalizes $7.86 billion chips manufacturing award for Intel | website=Reuters | date=November 26, 2024 | url=https://www.reuters.com/technology/us-finalizes-786-billion-chips-manufacturing-award-intel-2024-11-26/ | access-date=November 26, 2024}}</ref>

===Shortage of skilled workers===
The US lacks the workforce required for fulfilling fab projects, with one study estimating a need of 300,000 additional skilled workers just to complete ongoing fab projects, not including new projects. Comparatively, the number of US students pursuing relevant degrees has been stagnant for 30 years, while international students face difficulties in staying to work. Plants planned by both TSMC and Intel have reportedly been struggling to find qualified workers.<ref>{{cite news | url=https://www.washingtonpost.com/business/2023/03/28/chips-act-funding-isn-t-what-us-semiconductor-manufacturers-need/fa80c040-cd62-11ed-8907-156f0390d081_story.html | title=$52 Billion Chipmaking Plan Is Racing Toward Failure | newspaper=[[Washington Post]] | date=March 28, 2023}}</ref><ref name = "wsjaug4">{{cite news | url=https://www.wsj.com/tech/arizona-labor-spat-signals-challenges-for-u-s-chip-manufacturing-5632cfe3 | last1=Hayashi | first1=Yuka | last2=Jie | first2=Yang | title=Arizona Labor Spat Signals Challenges for U.S. Chip Manufacturing | newspaper=[[Wall Street Journal]] | date=August 24, 2023 | quote=Industry executives and economists say a shortage of chip-industry workers in the U.S. is a big hurdle as the U.S. seeks to entice Asian chip makers that dominate global semiconductor supplies, and who enjoy deep pools of skilled workers and lower production costs at home. }}</ref> Even after completion, in the operational/manufacturing stage, 40% of the permanent new workers will need two-year technician degrees and 60% will need four-year engineering degrees or higher.<ref name = "wsjaug4"/>

In Arizona, local unions clashed with TSMC after it reported that fab construction in Arizona was running behind schedule due to "an insufficient amount of skilled workers" with the expertise needed to install specialized equipment. TSMC planned to send experienced Taiwanese technicians to train local workers, which local unions characterized as "a lack of respect for American workers". The Arizona Building and Construction Trades Council subsequently asked Congress to block visas for 500 Taiwanese workers. TSMC reported that due to issues with labor, its investment in the first Arizona fab is expected to be delayed into 2025, with the second fab delayed from 2026 to 2027.<ref name = "wsjaug4"/><ref>{{cite news | url=https://english.cw.com.tw/article/article.action?id=3566 | last=Huang | first=Elaine| title=TSMC in Arizona: Who wins in dispute with labor union? | work=CommonWealth Magazine | date=November 11, 2023 | quote=With an investment of US$40 billion the Arizona fab is the biggest investment that TMSC has undertaken to date, and the highest investment ever made by a foreign company in the United States. }}</ref><ref name="Butler 2023"/><ref name="Zhou 2024"/> (A third fab intended for hosting the [[2 nm process]] would be announced in April 2024, though construction would not start until 2028.)<ref name="Department of Commerce 2024 TSMC Announcement">{{cite web | title=Biden-Harris Administration Announces Preliminary Terms with TSMC, Expanded Investment from Company to Bring World's Most Advanced Leading-Edge Technology to the U.S. | website=U.S. Department of Commerce | date=8 April 2024 | url=https://www.commerce.gov/news/press-releases/2024/04/biden-harris-administration-announces-preliminary-terms-tsmc-expanded | access-date=27 April 2024}}</ref><ref name="Belanger 2024">{{cite web | last=Belanger | first=Ashley | title=TSMC will build third Arizona fab after winning $6.6B in CHIPS funding | website=Ars Technica | date=8 April 2024 | url=https://arstechnica.com/tech-policy/2024/04/tsmc-will-build-third-arizona-fab-after-winning-6-6b-in-chips-funding/ | access-date=27 April 2024}}</ref> In contrast, in February 2024 TSMC completed construction of its first fab in Japan, located in the Kumamoto region, in 20 months, by running 24-hour shifts, helped by the Japanese government and locals being welcoming to the influx of skilled Taiwanese workers needed for the project.<ref name=IC_2024-03-05 />

Intel similarly experienced delays from labor issues, with its planned Ohio fab expected to be delayed into 2026 due to a lack of skilled workers, as well as delays in grant funding.<ref name=IC_2024-03-05>{{cite news | url=https://www.investorschronicle.co.uk/news/2024/03/05/what-tsmc-s-new-plant-tells-us-about-intel-and-the-us-s-ambitions/ | last=Sants | first=Arthur | title=What TSMC's new plant tells us about Intel and the US's ambitions | work=Investors' Chronicle | date=March 5, 2024 | quote=Usually, it takes around three years to build such a plant. The Kumamoto project was completed in just 20 months. Semiconductor industry analyst Kevin Xu explained this was done by working seven days a week and running 24-hour non-stop shifts. ... In Japan, rather than unions resisting experienced Taiwanese workers moving to the country, they made them feel as welcome as possible, according to Xu: he said supermarkets even started stocking Taiwanese food, while an international school started hiring more Taiwanese teachers.}}</ref>

===Labor relations results===
On December 6, 2023, the Arizona Building Trades Council and TSMC announced a deal to ensure a union-run workforce development program, improvements to transparency, and increased communications with the company's Taiwanese management, would proceed at the Arizona site.<ref name="Newman 2023">{{cite web | last=Newman | first=Logan | title=TSMC Arizona, AZBTC agree to workforce partnership | website=GPEC | date=December 6, 2023 | url=https://www.gpec.org/news/tsmc-azbtc-agree-to-partnership/ | access-date=April 27, 2024}}</ref>

In August 2024, the ''Prospect'' reported on several effects of the CaSA on unionization, neutrality on which the CaSA does not require of grant recipients; more specifically, it covered Secretary Raimondo's lack of enforcement of the Commerce Department's Good Jobs Principles. Workers at an [[Analog Devices, Inc.]] fab in [[Beaverton, Oregon]] protested unsafe working conditions the previous June, and are lobbying Oregon state legislators to add  unionization neutrality provisions to their state-level version of the Act. [[Microchip Technology]] Vice President Dan Malinaric was recorded in July as pressuring workers to not form a union, a violation of the [[Wagner Act]]. The [[Communications Workers of America]] union was only able to reach community benefits agreements with a select few firms benefiting from the Act, including [[Akash Systems]].<ref name="Stacher 2024">{{cite web | last=Stacher | first=Macy | title=How Much Will the CHIPS Act Help the Workers Who Make Them? | website=The American Prospect | date=August 30, 2024 | url=https://prospect.org/labor/2024-08-30-how-much-will-chips-act-help-workers/ | access-date=September 1, 2024}}</ref>

===Secure enclave issue===
In March 2024, ''[[Bloomberg News]]'' reported that Intel was poised to receive $3.5 billion from the CaSA in the [[2024 United States federal budget|year's federal budget]] (specifically the second '[[omnibus spending bill#minibus|minibus]]') as part of a "secure enclave" program which Intel claimed would help facilitate national security through carrying out [[United States Department of Defense]] contracts with high levels of secrecy.<ref name="Hawkins 2024-03-06">{{cite web | last=Hawkins | first=Mackenzie | title=Intel Stands to Win $3.5 Billion to Produce Chips for Military | website=Bloomberg.com | date=March 6, 2024 | url=https://www.bloomberg.com/news/articles/2024-03-06/intel-stands-to-win-3-5-billion-to-produce-chips-for-military | access-date=March 17, 2024}}</ref><ref name="Ahlman 2024">{{cite web | last=Ahlman | first=Austin | title=Intel's $3.5 Billion Boondoggle | website=The American Prospect | date=March 8, 2024 | url=https://prospect.org/economy/2024-03-08-intels-3-5-billion-boondoggle-chips-act/ | access-date=March 17, 2024}}</ref> Citing interviews of Charles Wessner of the [[Center for Strategic and International Studies]] and key congressional aides, and a risk assessment report from the [[United States Department of the Air Force]], Austin Ahlman of the antitrust think tank Open Markets Institute criticized the plan, not least because it would take up more than 10 percent of the $39 billion in grants the Act designates for domestic semiconductors, as well as increase concentration in the domestic semiconductor industry.<ref name="Ahlman 2024"/><ref name="Hawkins King 2024">{{cite web | last1=Hawkins | first1=Mackenzie | last2=King | first2=Ian | title=Pentagon Scraps Plan to Spend $2.5 Billion on Intel Grant | website=Bloomberg.com | date=March 12, 2024 | url=https://www.bloomberg.com/news/articles/2024-03-12/pentagon-scraps-plan-to-spend-2-5-billion-on-intel-chip-grant | access-date=April 30, 2024}}</ref> [[GlobalFoundries]] executives also criticized the plan. The DoD later withdrew its $2.5 billion contribution to the secure enclave plan and gave it to the Commerce Department,<ref name="Hawkins King 2024"/> which allowed Intel to finalize the funding agreement on September 16, 2024,<ref name="Clark Ngo Swanson 2024">{{cite web | last1=Clark | first1=Don | last2=Ngo | first2=Madeleine | last3=Swanson | first3=Ana | title=Intel, Aiming to Reverse Slump, Unveils New Contracts and Cost Cuts | website=The New York Times | date=September 16, 2024 | url=https://www.nytimes.com/2024/09/16/us/politics/intel-chips-semiconductor-grant.html | access-date=November 5, 2024}}</ref> amid concerns of its shaky financial performance and lagging customer outreach.<ref name="Nguyen 2024">{{Cite web |date=2024-08-19 |title=The fall of Intel is a cautionary tale for Silicon Valley |url=https://sfstandard.com/2024/08/19/intel-once-chip-leader-now-trailing/ |access-date=2024-11-05 |website=The San Francisco Standard |language=en}}</ref><ref name="Swanson Mickle 2024">{{cite web | last1=Swanson | first1=Ana | last2=Mickle | first2=Tripp | title=The White House Bet Big on Intel. Will It Backfire? | website=The New York Times | date=October 24, 2024 | url=https://www.nytimes.com/2024/10/24/us/politics/intel-chips-biden.html | access-date=November 5, 2024}}</ref><ref name="Hawkins 2024-09-04">{{cite web | last=Hawkins | first=Mackenzie | title=Intel's Money Woes Throw Biden Team's Chip Strategy Into Turmoil | website=Bloomberg.com | date=September 4, 2024 | url=https://www.bloomberg.com/news/articles/2024-09-04/intel-s-money-woes-throw-biden-team-s-chip-strategy-into-turmoil | access-date=November 5, 2024}}</ref><ref name="Albergotti Hoffman 2024">{{cite web | last1=Albergotti | first1=Reed | last2=Hoffman | first2=Liz | title=Concerns grow in Washington over Intel | website=Semafor | date=November 1, 2024 | url=https://www.semafor.com/article/11/01/2024/concerns-grow-in-washington-over-intel| access-date=November 5, 2024}}</ref> The funding agreement resulted in a reduction of Intel's later grant from an announced $8.5 billion to $7.86 billion in November.<ref name="Shepardson 2024b"/>

== International collaboration ==

===State Department funds===
The State Department has awarded $200 million in partnerships to academia and foreign companies {{as of|2024|07|lc=y}} under the Act's International Technology Security and Innovation Fund. The State Department has partnered with the governments of [[Costa Rica]], [[Panama]], [[Vietnam]], [[Indonesia]], the [[Philippines]] and [[Mexico]] to distribute these funds, for technology incubation purposes.<ref name="State Department ITSI overview">{{cite web | title=The U.S. Department of State International Technology Security and Innovation Fund | website=United States Department of State | date=July 8, 2024 | url=https://www.state.gov/the-u-s-department-of-state-international-technology-security-and-innovation-fund/ | access-date=July 16, 2024}}</ref>

===India-US defense fab partnership===
In order to manufacture chips for national security needs, the US military has partnered with Indian [[startups]] to establish a semiconductor fabrication plant in [[India]]. With assistance from the India Semiconductor Mission and a strategic technology cooperation between the [[United States Space Force]] (USSF), Bharat Semi, and 3rdiTech, the fabrication plant would produce [[silicon carbide]], infrared, and [[gallium nitride]] chips. The plant will prioritize supplying the high-voltage [[power electronics]], advanced communications, and advanced sensors that are the three fundamental foundations of [[modern warfare]]. The chips will also be utilized in data centers, communications infrastructure, green energy systems, and railroads. It will support the development of a reliable and robust supply chain in the crucial area of national security.<ref>{{Cite web |last=Bhaumik |first=Anirban |title=US Space Force to help set up semiconductor plant in India to meet national security needs |url=https://www.deccanherald.com/india/india-to-get-first-national-security-semiconductor-fabrication-plant-3201871 |access-date=2024-09-27 |website=Deccan Herald |language=en}}</ref>

The two-way cooperation is part of the CHIPS and Science Act and [[United States–India Initiative on Critical and Emerging Technology]]. In order to design and develop military-grade semiconductor for [[Night-vision device|night vision devices]], [[missile guidance]], space sensors, drones, [[fighter aircraft]], [[electric vehicle]]s, [[military communications]], [[radar]]s, and jammers, the collaboration involves setting up design hubs, testing centers, centers of excellence, and two fabrication units.<ref>{{Cite news |last=Jha |first=Prashant |date=23 September 2024 |title=This is India's Taiwan moment, there is no turning back: Bharat Semi founders |url=https://www.hindustantimes.com/world-news/this-is-india-s-taiwan-moment-there-is-no-turning-back-bharat-semi-founders-101727102876329.html |access-date=27 September 2024 |work=Hindustan Times}}</ref><ref>{{Cite news |last=Singh |first=Surendra |date=2024-09-27 |title=Fabrication unit in India to provide semiconductor chips to US, Indian forces |url=https://timesofindia.indiatimes.com/india/fabrication-unit-in-india-to-provide-semiconductor-chips-to-us-indian-forces/articleshow/113678007.cms |access-date=2024-09-27 |work=The Times of India |issn=0971-8257}}</ref> The project will receive a 50% [[capital expenditure]] subsidy from the India Semiconductor Mission.<ref>{{Cite web |last=Barik |first=Soumyarendra |date=2024-09-26 |title=3rdiTech: The chipmaker at the heart of the new India-US compound semiconductor partnership |url=https://indianexpress.com/article/business/pm-modi-joe-biden-semiconductor-fabrication-plant-india-start-up-9588623/ |access-date=2024-09-27 |website=The Indian Express |language=en}}</ref>

To address the defense demands of the United States and its allies, the Shakti Semiconductor Fab will acquire complete expertise in the development of [[compound semiconductors]]. The factory will begin phase one production in 2027, with an annual target of 50,000 units. The establishment of the facility would cost $500 million in investments. [[General Atomics]] is 3rdiTech's technology validation partner.<ref>{{Cite web |last=Luthra |first=Parikshit |date=2024-09-24 |title=India to get 100% tech transfer from US for Shakti Semiconductor Fab |url=https://www.cnbctv18.com/business/india-to-get-100-tech-transfer-from-us-for-shakti-semiconductor-fab-19481882.htm |access-date=2024-09-27 |website=CNBCTV18 |language=en}}</ref> The company has worked under the DoD and the [[Ministry of Defence (United Kingdom)|Ministry of Defence]] in the United Kingdom.<ref>{{Cite news |last1=Mishra |first1=Ashutosh |last2=Shinde |first2=Shivani |date=23 September 2024 |title=Meet Bharat Semi, startup behind Indo-US semiconductor fab partnership |url=https://www.business-standard.com/companies/start-ups/bharat-semi-startup-behind-indo-us-partnership-in-semiconductor-fab-124092301132_1.html |access-date=27 September 2024 |work=Business Standard}}</ref>

Designed for national security, the fabrication plant is the first multi-material fabrication facility in the world.<ref>{{Cite web |last=Vishnuraj |first=Sujatha |date=2024-09-27 |title=West Bengal identifies land for India's first national security semiconductor plant |url=https://www.manufacturingtodayindia.com/west-bengal-identifies-land-for-indias-first-national-security-semiconductor-plant |access-date=2024-09-27 |website=Manufacturing Today |language=en-US}}</ref> On September 21, 2024, at a bilateral meeting between [[President of the United States|President]] [[Joe Biden]] and [[Prime Minister of India|Prime Minister]] [[Narendra Modi]] in [[Delaware]], the blueprint for the Bharat Semi Fab was revealed. The strategic significance of this project is further enhanced by the fact that it represents the US Space Force's first-ever international technology partnership.<ref>{{Cite web |last=Siddiqui |first=Huma |date=2024-09-23 |title=India-US semiconductor partnership breaks ground on National Security and Technology front |url=https://www.financialexpress.com/business/industry-india-us-semiconductor-partnership-breaks-ground-on-national-security-and-technology-front-3618852/ |access-date=2024-09-27 |website=Financialexpress |language=en}}</ref>

== Follow-up environmental bill ==
On July 11, 2023, after complaints from semiconductor lobbyists on CHIPS Act-related permitting issues, Senators [[Mark Kelly]], [[Sherrod Brown]], [[Todd Young]], [[Ted Cruz]], and [[Bill Hagerty]] introduced the Building Chips in America Act, which would designate the Commerce Department the lead agency for major fab projects, limit the scope of NEPA reviews for certain fab projects, and cut judicial review times for them.<ref name="Brown 2023">{{cite web | title=Brown, Colleagues Introduce Bipartisan, Bicameral Bill to Speed up Historic Domestic Manufacturing Provisions Included in Chips Act | website=Senator Sherrod Brown | date=July 11, 2023 | url=https://www.brown.senate.gov/newsroom/press/release/sherrod-brown-colleagues-bipartisan-bill-manufacturing-provisions-chips-act | access-date=September 27, 2024}}</ref> The Senate passed the bill once on July 28, 2023<ref name="Neuffer 2023">{{cite web | last=Neuffer | first=John | title=Press Release: SIA Applauds Senate Passage of CHIPS Permitting Legislation | website=Semiconductor Industry Association | date=July 28, 2023 | url=https://www.semiconductors.org/sia-applauds-senate-passage-of-chips-permitting-legislation/ | access-date=September 27, 2024}}</ref> and again in December 2023. The House passed the companion bill on September 23, 2024, with a vote of 275–125. Amid protests from [[Zoe Lofgren]], the [[Sierra Club]], [[Center for Biological Diversity]], CHIPS Communities United, and two dozen other environmental groups,<ref name="Politico 2024">{{cite web | last1=Bordelon | first1=Brendan | last2=Mui | first2=Christine | last3=Brugger | first3=Kelsey | title=Biden breaks with environmentalists, House Dems on chip bill | website=POLITICO | date=September 24, 2024 | url=https://www.politico.com/news/2024/09/24/congress-forces-biden-to-choose-between-chips-and-climate-00180809 | access-date=September 27, 2024}}</ref> President Biden signed the bill into law on October 2.<ref name="White House S 2228">{{cite web | author=The White House | title=Bill Signed: S. 2228 | website=The White House | date=October 2, 2024 | url=https://bidenwhitehouse.archives.gov/briefing-room/legislation/2024/10/02/bill-signed-s-2228/ | access-date=October 20, 2024}}</ref><ref name="Congress.gov 2024">{{cite web  | title=118th Congress (2023-2024): Building Chips in America Act of 2023 (All Actions) | website=Congress.gov | date=October 2, 2024 | url=https://www.congress.gov/bill/118th-congress/senate-bill/2228/all-actions | access-date=October 20, 2024}}</ref><ref name="Shine 2024">{{cite web | last=Shine | first=Ian | title=The Building Chips in America Act: what's in the new bill? | website=World Economic Forum | date=October 9, 2024 | url=https://www.weforum.org/agenda/2024/10/building-chips-in-america-act-semiconductor-industry/ | access-date=October 20, 2024}}</ref>

==See also==
* [[America COMPETES Act of 2022]] – original House version
* [[European Chips Act]]
* [[Infrastructure Investment and Jobs Act]] and [[Inflation Reduction Act of 2022]] – other major acts in industrial policy signed by Biden
* [[Technology policy]]
* [[Technology education]]
* [[Techno-nationalism]]
* [[United States Innovation and Competition Act]] – original Senate version
* [[Artificial Intelligence Cold War]]
* [[National Artificial Intelligence Initiative Act of 2020]]

==References==
{{Reflist}}

==External links==
* [https://www.nist.gov/chips Official CHIPS website] on nist.gov (also known as chips.gov)
:* [https://www.nist.gov/chips/chips-america-webinars List of CHIPS webinars]
* Chips and Science Act bill:
:* [https://www.congress.gov/bill/117th-congress/house-bill/4346 H.R.4346 – Chips and Science Act] bill information on congress.gov
:* [https://www.govinfo.gov/content/pkg/COMPS-17006/uslm/COMPS-17006.xml CHIPS and Science Act] as amended ([https://www.govinfo.gov/content/pkg/COMPS-17006/pdf/COMPS-17006.pdf PDF]/[https://www.govinfo.gov/app/details/COMPS-17006/ details]) in the [[United States Government Publishing Office|GPO]] [https://www.govinfo.gov/help/comps Statute Compilations collection]
:* [https://www.govinfo.gov/link/plaw/117/public/167?link-type=uslm CHIPS and Science Act] as enacted ([https://www.govinfo.gov/link/plaw/117/public/167?link-type=pdf&.pdf PDF]/[https://www.govinfo.gov/link/plaw/117/public/167?link-type=details details]) in the [[United States Statutes at Large|US Statutes at Large]]

{{Joe Biden}}
{{United States environmental law}}

[[Category:Acts of the 117th United States Congress]]
[[Category:China–United States relations]]
[[Category:Presidency of Joe Biden]]
[[Category:United States federal budgets]]
[[Category:United States federal energy legislation]]