In 2020, Congress authorized the CHIPS Act to strengthen domestic semiconductor manufacturing, design and research, fortify the economy and national security, and reinforce America’s chip supply chains. Subsequently, in July 2022, Congress passed the CHIPS & Science Act that provided semiconductor manufacturing grants, research investments, and an investment tax credit for chip manufacturing. SIA also supports enactment of an investment tax credit for semiconductor design.
The share of modern semiconductor manufacturing capacity located in the U.S. has eroded from 37% in 1990 to 10% in 2022, mostly because other countries’ governments have invested ambitiously in chip manufacturing incentives and the U.S. government has not. Meanwhile, federal investments in chip research have held flat as a share of GDP, while other countries have significantly ramped up research investments.
As a result of the CHIPS Act, the U.S. is expected to reverse this trend and increase it’s semiconductor manufacturing by 203% from 2022 to 2032, the highest growth rate in the world.
Congress and the Administration need to maintain this momentum to fortify American semiconductor research, design, and manufacturing and continue to strengthen our country’s economy, national security, and technology leadership.
2-Pager: America’s Chip Resurgence>
Emerging Resilience in the Semiconductor Supply Chain>
STATEMENT: SIA Applauds Passage of CHIPS Act of 2022>
The semiconductor industry directly employs nearly 338,000 people in America and supports more than 1.9 million additional jobs throughout the U.S. economy. With bold greater federal investment in domestic chip manufacturing and research, our economic impact would be even greater.
