Two years after the US CHIPS Act came into effect, the American government announced the results of strengthening semiconductor manufacturing and research and development

Fact Sheet: Two years after the passage of CHIPS and the Science Act, the Biden Harris Administration Celebrates Historic Achievements in Domesticating Semiconductor Supply Chains, Creating Jobs, Supporting Innovation, and Protecting National Security

President Biden signed the CHIPS and Science Act (CHIPS) on 2022/8/9. On 2024/8/9, about 2 years after that, the US White House made an announcement regarding the results of the same law over the past 2 years.
📌 Progress of the return to semiconductor manufacturing in the US 📌

The incentive program by the U.S. Department of Commerce concluded preliminary agreements to pay a total of over 30 billion dollars to 16 companies out of a total amount of 39 billion dollars, which is direct funding provided under the CHIPS Act. The remaining funds will also be allocated to applicants by the end of 2024.
Before the implementation of the CHIPS Act, none of the most advanced semiconductors were produced in the United States, but until now, 5 advanced logic, memory, and advanced packaging providers have established bases, and there is no other economic zone with 3 or more of these companies, and by combining these factories, it is assumed that the United States will be able to produce almost 30% of the world's advanced chip supply by 2032. Furthermore, it supports not only advanced but also production expansion of mature processes, and by constructing a strong semiconductor ecosystem, they are promoting supporting important industries from automobiles and medical devices to artificial intelligence and aerospace by 2030. Therefore, it is assumed that the Ministry of Finance is also working on formulating rules aimed at providing 25% investment tax credit to semiconductor manufacturing and semiconductor manufacturing equipment companies.

📌 Generating benefits for American workers and developing regional economies 📌

The creation of high-income employment opportunities for many Americans has been cited as one of the highlights of the CHIPS Act. To achieve this, the government has invested hundreds of millions of dollars with the intention that revival of the US semiconductor industry will benefit American workers.
In addition, the Department of Commerce has invested 0.5 billion4 million dollars in 12 technology hubs to provide each region with resources and opportunities necessary to lead the future economy, such as semiconductors, clean energy, biotechnology, AI, quantum computing, etc., and is also providing funds to the National Science Foundation and the Small and Medium Business Technology Innovation Research (SBIR).

📌 National Security and Semiconductors 📌

One of the purposes of grants under the CHIPS Act is to directly support national security by increasing the supply of important technology necessary to protect Americans, such as chips necessary for important defense programs such as fighter jets, and chips for everyday applications that affect all Americans from automobiles to secure Wi-Fi. Therefore, it was announced that the Department of Defense's Microelectronics Commons Program will invest an initial budget of 0.2 billion80 million dollars as the first year to build an ecosystem for cutting-edge applications in the 6 fields of secure edge/IoT, electromagnetic warfare, 5G/6G, quantum technology, AI hardware, and commercial advanced technology. These projects will be built from Commons regional hubs and are expected to begin before the end of the year, along with additional grants for human, digital, and physical infrastructure.
Furthermore, the State Department recently launched the ITSI Western Hemisphere Semiconductor Initiative supported by the International Technology Security and Innovation Fund (ITSI) established based on the CHIPS Act, aiming to strengthen post-processing capabilities in partner countries such as Mexico, Panama, and Costa Rica. It also announced new partnerships with Vietnam, Indonesia, the Philippines, and Kenya to explore opportunities to adjust semiconductor supply chains that are reliable, transparent, and resilient.
The Department of Commerce also announced that the Indo-Pacific Prosperous Economic Framework (IPEF) agreement on supply chain resilience came into effect on 2024/2/24. The agreement, led by the United States, will increase the resilience, efficiency, productivity, and sustainability of supply chains for semiconductors and other industries. Additionally, it has been revealed that 0.1 billion 40 million dollars were provided to 17 projects through the Public Radio Supply Chain Innovation Fund.

📌 Accelerate investment in innovation 📌

In addition, it aims to accelerate the establishment of domestic production capacity for advanced semiconductor packages by investing approximately 3 billion dollars in the National Advanced Package Manufacturing Program (NAPMP). Thus, it is assumed that the technological leadership of the United States in cutting-edge semiconductors will be promoted, and future innovation fields including artificial intelligence will be supported. Over 100 concept papers have been submitted for the first funding opportunity, and 1.6 billion dollars is scheduled to be announced in the fall of 2024 as a second funding opportunity.
Furthermore, the non-profit organization NATCast, which operates NSTC, was established with the aim of making it possible to rapidly introduce innovations that will strengthen domestic competitiveness over the next few decades. The Department of Commerce is collaborating with Natcast to announce three CHIPS R&D research facilities: the NSTC Prototyping and National Advanced Package Manufacturing Program Facility, the NSTC Management and Design Facility, and the NSTC EUV Center. Also, it is assumed that funding opportunities for the Manufacturing USA Institute, which focuses on the development, verification, and use of digital twins, are also being created through the Department of Commerce.