CHIPS Act is Working, Lawmakers Say at First Anniversary

Companies have announced over $166 billion in semiconductor investments since the CHIPS Act was passed.

CHIPS Act is Working, Lawmakers Say at First Anniversary
Photo of Doris Matsui

WASHINGTON, August 11, 2023 – The White House on Thursday celebrated the CHIPS and Science Act as a successful investment in American semiconductor manufacturing, research and development and workforce on the law’s one-year anniversary.

“One year ago today, I signed into law the bipartisan CHIPS and Science Act to revitalize American leadership in semiconductors,” said President Joe Biden on the one year anniversary. “The CHIPS and Science Act is a key part of my Bidenomics agenda to bring investment and opportunity to every corner of the country. Over the coming months, my Administration will continue to implement this historic law, make sure American union workers, small businesses, and families benefit from investments spurred by the CHIPS and Science Act.”

The CHIPS and Science Act invests nearly $52 billion in U.S. semiconductor manufacturing, the microprocessors that power every electronic device. The law also creates a 25 percent tax credit for capital investments in semiconductor manufacturing and is helping to keep America at the forefront of innovation and technological development, wrote the White House in a press release.

Since the passage of the law, companies have announced over $166 billion in manufacturing in semiconductors and electronics, and at least 50 community colleges in 19 states have announced new or expanded programs to help American workers find jobs in the semiconductor industry.

“These investments are creating jobs and opportunities in communities across the country – from Ohio to Arizona, Texas and New York,” said Biden. He added that the act will “make America once again a leader in semiconductor manufacturing and less dependent on other countries for our electronics or clean energy supply chains.”

Laying the foundation for dynamic economy and national security

“The CHIPS Act has only been law for one year, but it has already laid the foundation for a more dynamic economy and durable national security,” added Representative Doris Matsui, D-Calif., in a statement. “Innovation has always been the backbone of America’s economic edge – but we needed bold investments to reclaim our global leadership. Bottom line: the CHIPS Act is working.”

“American innovators are lined up to create good-paying jobs and build the skilled and diverse workforce we need to grow. CHIPS Act implementation is on strong footing, and we must continue to act with urgency to show the rest of the world that America is still the gold standard for innovation,” Matsui continued.

The Department of Commerce announced the first round of grants and the National Science Foundation and Departments of Energy, Commerce and Defense announced this week progress toward establishing the National Semiconductor Technology Center, which will advance America’s semiconductor research and development, reported the White House.

The first round of funding covers projects that construct, expand or modernize facilities producing semiconductors and projects that invest in facilities to produce semiconductor materials and manufacturing equipment.

Already, the Commerce Department received more than 460 statements of interest for companies seeking to receive money from the CHIPS Act across 42 states. The Department of Commerce has taken several steps to ensure that the Act is accessible for companies looking to receive grant money, wrote the White House.

Ryan Harper, a White House representative for the CHIPS Act, said on a call Thursday that the Commerce Department will announce funding opportunities for smaller projects to support fab clusters in the coming weeks.

Commerce encourages local and state governments to apply as a partnership with grantees for these projects, said Harper. He added that there are many more funding opportunities to come through the CHIPS Act.

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