The CHIPS and Science Act will bring jobs back to the United States

The United States dominated global semiconductor production in the 1980s and early 1990s with companies like Intel, IBM, and Texas Instruments leading the way. About 37 percent% of the world’s chip were manufactured in U.S.-located fabrication plants (fabs) in 1990. While most chips and silicon wafers are still designed in the United States, their production has shifted significantly to East Asia, leaving the United States with only 12% of the world’s chip manufacturing in 2020.

A combination of COVID-era supply chain disruptions and growing geopolitical tensions with China has prompted the Biden administration to pass the bipartisan CHIPS and Science Act, which aims at boosting the nation' competitiveness in the market for semiconductors. Under the act, the U.S. government is making $52.7 billion available to fund semiconductor manufacturing from 2022 to 2026. Additionally, the act is offering $24 billion worth of tax credits for chip production and $3 billion for programs aimed at leading-edge technology.

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