The CHIPS and Science Act: Rebuilding US Semiconductor Manufacturing
Passed with rare bipartisan support in 2022, the CHIPS Act directs $52.7 billion to bring chip manufacturing back to the US. Intel, TSMC, anze:1rem;max-width:640px;margin:0 0 8px;"> Passed with rare bipartisan support in 2022, the CHIPS Act directs $52.7 billion to bring chip manufacturing back to the US. Intel, TSMC, and Samsung are already building. Here is what the law does and why it matters in 2026.
- Passed with rare bipartisan support in 2022, the CHIPS Act invests $52.7B in domestic semiconductor manufacturing and $200B in science R&D — driven by the 2021-22 chip shortage and China-Taiwan tensions
- The US produced just 12% of global chips before the CHIPS Act; the most advanced chips (under 5nm) were almost entirely made in Taiwan — a single geopolitical crisis could cut off supply
- Intel ($8.5B), TSMC ($6.6B), Samsung ($6.4B), and Micron ($6.1B) are all building new US fabrication plants with CHIPS Act funding — reshoring decades of offshored industrial capacity
- The CHIPS Act is bipartisan industrial policy — a departure from decades of free-market orthodoxy, structured around national security rather than economic efficiency alone
Major CHIPS Act Awards
| Company | Award | Location |
|---|---|---|
| Intel | Up to $8.5B grants + $11B loans | Ohio, Arizona, New Mexico, Oregon |
| TSMC | Up to $6.6B grants + $5B loans | Phoenix, Arizona (3 fab plants planned) |
| Samsung | Up to $6.4B grants | Taylor, Texas |
| Micron | Up to $6.1B grants + $7.5B loans | Clay, New York; Boise, Idaho |
| GlobalFoundries | Up to $1.5B grants | Malta, New York; Essex Junction, Vermont |
Status and Politics in 2026
Intel — the largest CHIPS Act recipient — experienced significant financial difficulties in 2024-25, cutting its workforce and delaying some planned fabs. Intel's struggles raised questions about the CHIPS Act's effectiveness and whether taxpayer funds were well-targeted. The company restructured its government business and fabrication plans under new leadership in 2025.
TSMC's Arizona facilities are among the most significant CHIPS Act successes. The company's Phoenix plants are manufacturing chips used in AI applications. A third fab bringing 2nm production to Arizona was announced in 2025. TSMC's US expansion is considered the most strategically important outcome of the CHIPS Act.
The CHIPS Act has maintained bipartisan support because semiconductor manufacturing jobs are going to swing states and Republican districts. The Trump administration continued CHIPS Act implementation largely intact. National security justifications — reducing Taiwan dependency — resonate across party lines in a way that climate or healthcare legislation does not.
Frequently Asked Questions
What is the CHIPS and Science Act?
The CHIPS Act (signed August 2022) provides $52.7B to rebuild US semiconductor manufacturing and $200B for science R&D. It was driven by the 2021-22 chip shortage and US dependence on Taiwan-based TSMC for advanced chips. Intel, TSMC, Samsung, and Micron received the largest awards.
Why does semiconductor manufacturing matter for national security?
The US produces ~12% of global chips but uses ~25%. The most advanced chips are almost entirely made by TSMC in Taiwan. A Chinese military action against Taiwan could cut off US access, halting production of smartphones, cars, weapons systems, and AI hardware. CHIPS Act plants aim to reduce this vulnerability.
Is the CHIPS Act bipartisan?
Yes — the CHIPS Act passed the Senate 64-33 and the House 243-187 with significant Republican support, unlike the IRA (zero R votes). National security framing and manufacturing jobs in Republican districts drove Republican support. The Trump administration has continued implementing it.
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