In 2021, the years-long decline in domestic chip production was exposed by a worldwide supply-chain crisis that led to calls for re-shoring manufacturing to the US. After more than a year of work from the Biden Administration to respond to acute semiconductor shortages, Congress in August 2022 passed the measure.
The Commerce Department, which is administering the CHIPS Act, spent months negotiating with semiconductor designers and fabricators to gain commitments from them and to achieve specific milestones in their projects before getting government payouts.
With the CHIPS Act spurring them on, semiconductor makers including Intel, Samsung, Micron, TSMC, and Texas Instruments unveiled plans for a number of new plants on US soil. (Qualcomm, in partnership with GlobalFoundries, also said it would invest $4.2 billion to double chip production in its Malta, NY facility.)
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