Basics
CHIPS Act Update: Latest Insights on Innovation and Science
Intellectual Property Manufacturing Technology
Published on February 28, 2025
Explore This BasicThe Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act was signed into law in late 2022. The legislation was designed to boost domestic manufacturing of semiconductors, secure supply chains and American jobs, as well as foster research and development in critical scientific and technological fields. Thanks to bipartisan support in the House and Senate, the CHIPS and Science Act was expected to increase domestic manufacturing capacity of these critical technologies. Manufacturing chips is highly specialized, capital-intensive, and takes years of development. Over time, many on Capitol Hill came to believe that the United States was losing ground to economies around the world in semiconductor manufacturing capacity due to the lack of comparable incentives offered in the United States.
The CHIPS Act addressed America’s disadvantages as an investment destination for capital intensive semiconductor manufacturing by providing $52 billion in grants and a related 25% investment tax credit that provides the medium-to-long-term certainty for companies considering these substantial investments. In this Basic, we take a look at recent updates to the CHIPS Act and discuss what is to come.
Links to Other Resources
- Citigroup – The U.S.-China Chip War: Who Dares to Win?
- NBC LA – Trump likely to uphold CHIPS Act despite his campaign rhetoric, policy experts say
- NPR – The new CHIPS and Science Act will bring semiconductor chip manufacturing to the U.S.
- Politico – Biden breaks with environmentalists, House Dems on chip bill
- Representative Michael McCaul – McCaul, Matsui Statement on Key Milestone for CHIPS Act Implementation
- U.S. Department of Commerce – Two Years Later: Funding from CHIPS and Science Act Creating Quality Jobs, Growing Local Economies, and Bringing Semiconductor Manufacturing Back to America
- The White House: President Biden Announces Up To $8.5 Billion Preliminary Agreement with Intel under the CHIPS & Science Act
- The White House – Two Years after the CHIPS and Science Act, Biden-Harris Administration Celebrates Historic Achievements in Bringing Semiconductor Supply Chains Home, Creating Jobs, Supporting Innovation, and Protecting National Security