Definition: Chips and Science Act

In mid-2022, the U.S. Congress passed the Chips and Science Act that provides $53 billion in grants for semiconductor manufacturing and 5G wireless deployment. The Act also provides $174 billion for science and technology research that includes spaceflight, quantum computing, biotech and experimental physics.

Commonly known as the "CHIPS Act" (Creating Helpful Incentives to Produce Semiconductors Act), it also provides $24 billion in tax credits for new chip fabrication plants, as well as increased funding for the National Science Foundation, Commerce Department, National Institute of Standards and Technology (NIST) and Energy Department.

A Combination of COMPETES and USICA Acts
The Chips and Science Act blends provisions from the America COMPETES Act passed in the House, the U.S. Innovation and Competition Act (USICA) passed in the Senate and the proposed FABS Act (Facilitating American-Built Semiconductors). See chip manufacturing.

New Chip Fabs
Hundreds of billions of dollars are being invested in the construction of new semiconductor fabrication plants in Arizona, New Mexico, Texas, Ohio and New York.

Chip Capital of America?

For decades, because of Intel and Microchip, the greater Phoenix, Arizona area has been a complete support system for semiconductors. Today, TSMC and Intel are making huge investments. (Images courtesy of Intel and Microchip Technology.)