CHIPS and Science Act

"CHIPS Act" redirects here. For other uses, see Chips Act.

CHIPS and Science Act
Great Seal of the United States
Other short titles
  • CHIPS Act of 2022
  • Research and Development, Competition, and Innovation Act
  • Supreme Court Security Funding Act of 2022
Long titleMaking appropriations for Legislative Branch for the fiscal year ending September 30, 2022, and for other purposes
NicknamesCHIPS-Plus
Enacted bythe 117th United States Congress
EffectiveAugust 9, 2022
Citations
Public lawPub. L. 117–167 (text) (PDF)
Statutes at Large136 Stat. 1366
Legislative history
  • Introduced in the House of Representatives as H.R. 4346 the Supreme Court Security Funding Act of 2022 by Tim Ryan (D–OH) on July 1, 2021
  • Committee consideration by House Appropriations
  • Passed the House on July 28, 2021 (215–207)
  • Passed the Senate as the Chips and Science Act on July 27, 2022 (64–33) with amendment
  • House agreed to Senate amendment on July 28, 2022 (243–187–1)
  • Signed into law by President Joe Biden on August 9, 2022

The CHIPS and Science Act is a U.S. federal statute enacted by the 117th United States Congress and signed into law by President Joe Biden on August 9, 2022. The act authorizes roughly $280 billion in new funding to boost domestic research and manufacturing of semiconductors in the United States, for which it appropriates $52.7 billion.[1][2][3] The act includes $39 billion in subsidies for chip manufacturing on U.S. soil along with 25% investment tax credits for costs of manufacturing equipment, and $13 billion for semiconductor research and workforce training, with the dual aim of strengthening American supply chain resilience and countering China.[4][5]: 1  It also invests $174 billion in the overall ecosystem of public sector research in science and technology, advancing human spaceflight, quantum computing, materials science, biotechnology, experimental physics, research security, social and ethical considerations, workforce development and diversity, equity, and inclusion efforts at NASA, NSF, DOE, EDA, and NIST.[6][7][8][9][10][11]

The act does not have an official short title as a whole but is divided into three divisions with their own short titles: Division A is the CHIPS Act of 2022 (where CHIPS stands for "Creating Helpful Incentives to Produce Semiconductors"); Division B is the Research and Development, Competition, and Innovation Act; and Division C is the Supreme Court Security Funding Act of 2022.[12]

By March 2024, analysts estimated that the act incentivized between 25 and 50 separate potential projects, with total projected investments of $160–200 billion and 25,000–45,000 new jobs. However, these projects are faced with delays in receiving grants due to bureaucratic hurdles and shortages of skilled workers, both during the construction phase and upon completion in the operational/manufacturing stage, where 40% of the permanent new workers will need two-year technician degrees and 60% will need four-year engineering degrees or higher.[13][14][15] In addition, Congress had routinely made several funding deals that underfunded key basic research provisions of the Act by tens of billions of dollars.[16][17]

  1. ^ Johnson, Lamar (August 9, 2022). "Biden ends slog on semiconductor bill with signature". POLITICO. Archived from the original on August 21, 2022. Retrieved August 9, 2022. Biden said Micron, an American-based company, announced a 10-year, $40 billion investment on Tuesday for factories and building memory chips as a result of the law. He also touted a Monday announcement by American companies Qualcomm and GlobalFoundries to invest $4 billion to produce semiconductors in the United States.
  2. ^ Congressional Research Service (April 25, 2023). "Frequently Asked Questions: CHIPS Act of 2022 Provisions and Implementation". United States Congressional Research Service.
  3. ^ Zimmerman, Alessandra (August 26, 2022). "R&D Funding Breakdown: CHIPS and Science Act" (PDF). American Association for the Advancement of Science.
  4. ^ "Taiwan's dominance of the chip industry makes it more important – No industry matters more to Taiwan than chipmaking". The Economist. March 6, 2023. Archived from the original on March 11, 2023. Retrieved March 11, 2023. America is also trying to stop China getting advanced chips. It passed the CHIPS and Science Act in August 2022, offering $39bn in subsidies and a 25% tax credit to promote manufacturing at home, as well as $13bn of investment in chip research. In October 2022 it banned the export of advanced chips and chipmaking gear to China.
  5. ^ Cite error: The named reference SJMN_2022-09-04 was invoked but never defined (see the help page).
  6. ^ Cite error: The named reference McKinsey 2022 was invoked but never defined (see the help page).
  7. ^ Cite error: The named reference CSIS 2 2022 was invoked but never defined (see the help page).
  8. ^ Cite error: The named reference Atlantic 20220810 was invoked but never defined (see the help page).
  9. ^ Cite error: The named reference AIP 2022 was invoked but never defined (see the help page).
  10. ^ Cite error: The named reference Energy.gov 2023 anniversary press release was invoked but never defined (see the help page).
  11. ^ Cite error: The named reference Guston 2023 was invoked but never defined (see the help page).
  12. ^ "Text – H.R.4346 – 117th Congress (2021–2022): Supreme Court Security Funding Act of 2022". U.S. Congress. August 9, 2022. Archived from the original on May 17, 2020. Retrieved September 11, 2022.
  13. ^ Cite error: The named reference Conness 2023 was invoked but never defined (see the help page).
  14. ^ Cite error: The named reference WSJ_2024-01-27 was invoked but never defined (see the help page).
  15. ^ Cite error: The named reference wsjaug4 was invoked but never defined (see the help page).
  16. ^ Cite error: The named reference Brookings 2023 was invoked but never defined (see the help page).
  17. ^ Cite error: The named reference Mui 2024 was invoked but never defined (see the help page).