What the CHIPS Act Really Means for U.S. Semiconductor Manufacturers

By Kenneth Rapoza, China Expert/Industry Analyst for the Coalition for a Prosperous America

The U.S. is closer to passing the CHIPS Act into law, a $250 billion Senate bill of which some $52 billion goes to U.S.-based semiconductor manufacturers to build chip fabrication facilities, or "fabs," in the U.S. Hefty tax breaks and other incentives will make it happen, said Jeff Ferry, chief economist for CPA. The CHIPS Act passed the Senate on Tuesday by a vote of 64 to 33. The bill now goes to the House, where it can be amended. Regardless, we expect this will become law by August. After it looked like the CHIPS Act would die a slow death due to its inclusion in Congress' broader China competition bill, most recently dubbed the Bipartisan Innovation Act, major chipmakers said they would stop new projects in the U.S. without a support signal from Washington. That signal came this week when the CHIPS Act became a stand-alone bill once again. [more...]