The CHIPS and Science Act of 2022, referred to as the CHIPS Act, was signed into law in August 2022 to boost American semiconductor research, development, and production, ensuring U.S. leadership in the technology that forms the foundation of everything from automobiles to household appliances to defense systems. America invented the semiconductor, but today produces about 10 percent of the world’s supply—and none of the most advanced chips. Instead, we rely on East Asia for 75 percent of global production.
The CHIPS Act authorizes the Department of Commerce:
- $39 billion in direct financial assistance for the construction and expansion of semiconductor fabrication facilities, assembly, testing, advanced packaging, and research and development.
- $11 billion to create 20 geographically-distributed regional technology hubs, which will focus on technology development, job creation, and expanding U.S. innovation capacity; and
- $10 billion to expand NIST’s critical technological research and strengthen small manufacturers through the Hollings Manufacturing Extension Partnership (MEP).
