The CHIPS and Science Act of 2022 creates a $39 billion fund that would provide direct financial assistance for the construction and expansion of semiconductor manufacturing facilities, among other purposes, according to a summary from the Senate Commerce Committee.
The legislation authorizes roughly $200 billion in science and technology research funding for coming years. The directive on research is broad, related to technology from robotics to high-performance computing to semiconductors.
Companies that could tap the funding for U.S. expansions include Intel Corp., Taiwan Semiconductor Manufacturing Co., GlobalFoundries Inc., Micron Technology Inc., Applied Materials Inc. and more.
*Tweet on the approved chips & science act 2022
The bill 'CHIPS & Science Act" was just approved!
Over $200 billion fund that'll provide direct financial assistance for the construction and expansion of semiconductor manufacturing facilities, among other purposes!#CHIPSAct #semiconductors #amd #intelhttps://t.co/tuM7lFuL9J
— The_Journalbiz (@the_journalbiz) July 27, 2022
The legislation is set to give semiconductor companies $52.7 billion to encourage them to develop and research semiconductors and chips in the U.S.
Already, several companies including Intel Corp. have announced plans to build plants in the U.S., on the condition that this legislation passes.
A separate $11 billion program seeks to partner with industry to advance semiconductor manufacturing research and workforce training, while another $2 billion fund aims to more quickly translate laboratory advances into military and other applications. Lawmakers added $24 billion in tax credits for investments in semiconductor manufacturing.
- Right now, most chips are built abroad, which backers of this legislation say opens the U.S. up to security risks and supply-chain delays. The fund is for technology companies to build, expand or modernize facilities, as well as continue exploration and testing.
The bill also creates a 25% investment tax credit for companies that invest in semiconductor manufacturing to further incentivize U.S. companies.