The U.S. Congress has passed the CHIPS and Science Act of 2022 in July with the goal of bolstering American semiconductor supply chains and manufacturing, design and research, as well as the domestic economy and national security.
The CHIPS and Science Act provides about US $52 billion over 5 years to grow semiconductor manufacturing. Of the said amount, $39 billion in grants is allotted for new manufacturing, $11 billion for federal semiconductor research programs and workforce development, and $2 billion for Defense Department–related microelectronics activities. Additionally, a 25 percent tax credit for new or expanded facilities that make semiconductors or chipmaking equipment.
While some chipmakers are celebrating the landmark passage, China responded by saying that the newly legislated Act will distort global semiconductor supply chain and disrupt the international trade, as reported by Reuters.
According to China’s commerce ministry, China will continue to monitor the progress and implementation of the U.S. Act and take measures to safeguard its legitimate rights when necessary.
Read the CHIPS Act of 2022 here.
