Why billions of CHIPS Act dollars have not been distributed
Over the past 30 years, the US share of global semiconductor production has fallen from 37% to just 12%, according to White House figures.
Meanwhile, China’s share of chip manufacturing has grown nearly 50% over the past two years and now makes up about 18% of the world’s supply.
In 2021, the decline in domestic chip production was exposed by a worldwide supply-chain crisis that led to calls for reshoring manufacturing to the US. After more than a year of work from the Biden-Harris Administration to respond to acute semiconductor shortages, Congress in August 2022 passed the CHIPS and Science Act (CHIPS Act). The legislation provided the US Department of Commerce (DoC) with $52.7 billion for a suite of programs under the CHIPS for America program to “revitalize” the US position in semiconductor research, development, and manufacturing.