US Chips Act triggers massive investment spree

The world’s leading-edge semiconductor manufacturers are sinking well over 200 billion dollars into production expansions in the US. The US government is chipping in too, providing 21.5 billion dollars in grants and 16 billion dollars in loans along with tax breaks on capital expenditure. In total, the US Chips and Science Act earmarks almost 53 billion dollars in stimuli to the semicon industry. This covers most of the supply chain, but the bulk ends up in the hands of leading-edge chipmakers.

The share of US semiconductor manufacturing capacity has eroded from 37 percent in 1990 to about 12 percent today, according to the Semiconductor Industry Association (SIA). The US government has set no official target, but now that Intel, Samsung and TSMC (see inset) have unveiled their plans, Washington says it’s “on track to produce roughly 20 percent of the world’s leading-edge chips by 2030.”