In addition to billons of dollars of subsidies, the legislative measures include the provision of billions of dollars worth of tax incentives to chipmakers to encourage them to build semiconductor fabrication plants or ‘fabs’ in the United States rather than elsewhere. In January 2022, Intel revealed plans to build $20 billion chip plant near Columbus, Ohio but postponed its ceremonial address at the site in July while it waited for Congress to pass the CHIPS Act.
The U.S. currently accounts for 12% of global semiconductor manufacturing; in 1990, its share was 37%. Speaking on 26 July in a meeting with CEOs and Labor Leaders on the importance of passing the bill, President Biden said, “America invented the semiconductor. It’s time to bring it home.”
