President Biden signs CHIPS for America Act into law

In a historic ceremony held in the Rose Garden of the White House today August 9th, 2022, President Joe Biden delivered remarks and signed into law the long-awaited CHIPS and Science Act of 2022, a $280 billion bipartisan bill to boost domestic high-tech manufacturing, part of his administration’s push to boost U.S. competitiveness over China.

The ceremony included lawmakers, union officials, local politicians, and business leaders as the president highlighted the new law that will incentivize investments in the American semiconductor industry in an effort to ease U.S. reliance on overseas supply chains for critical, cutting-edge goods.

The bill provides a 25% tax credit for U.S. facilities that produce semiconductors or chipmaking equipment and $52 billion in funding for new semiconductor programs. The funding includes $39 billion for grants available to semiconductor manufacturers as well as equipment and materials suppliers and $11 billion for federal semiconductor research programs.

According to the non-partisan Congressional Budget Office (CBO), the bill has a total cost of $79.344 billion over 10 years. These investments will create hundreds of thousands of American jobs, spur hundreds of billions of dollars in chip company investments in the U.S., and ensure more resilient chip supply chains for key manufacturing industries in the U.S. and for the national security community.

In addition to the many greenfield fab builds already announced by several companies over the past year (TSMC, Intel, etc.), Micron announced a $40 billion plan to boost domestic manufacturing of memory chips while Qualcomm and GlobalFoundries announced a $4.2 billion expansion of an upstate New York chip plant.

Click here to relive this historic presidential signing event for the U.S. semiconductor industry.