From Fortune:

American semiconductor manufacturing decreased despite the $53 billion CHIPS and Science Act signed by President Joe Biden. However, the administration recently announced $5 billion for a new training facility and plans to distribute billions more in grants to domestic chip manufacturers. Experts caution that the long-term policy is on track and that it’s normal to not see immediate results. The U.S. share of the global semiconductor market declined from 12% to a projected 9.8% in 2024.

The CHIPS Act aims to reverse the decline in American semiconductor manufacturing by committing $53 billion to revitalize the industry. However, the government has only distributed about $200 million in grants, a fraction of the intended investment. Major projects have experienced delays, contributing to a decrease in America’s share of the global semiconductor market despite the private sector’s overwhelming interest in investing in the industry.

The CHIPS Act was established to support the American semiconductor industry and reverse the decline in manufacturing. While the government has been slow to distribute funds, the private sector has shown great interest in investing in the semiconductor industry in the U.S. The Act has also inspired similar policies worldwide, including in Japan, South Korea, the EU, and China.

Chinese semiconductor manufacturers have capitalized on the government’s support by increasing their research and development expenses. This has been an additional incentive for other countries to invest in domestic semiconductor manufacturing. The slow progress of the CHIPS Act has been a point of criticism, but experts agree that building up semiconductor infrastructure takes time and commitment.

OpenAI CEO Sam Altman is seeking up to $7 trillion to reshape the global semiconductor supply chain but may face the same challenges as the U.S. government in building up semiconductor infrastructure. Critics believe that the CHIPS Act is an essential, albeit time-consuming, program for reviving semiconductor manufacturing.



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