It’s not just a chip off the old block — America is carving out a whole new frontier in semiconductor manufacturing. The outsourcing-dependent US chip industry has been losing ground to Taiwan and Korea for years. But thanks to the 2022 CHIPS Act, the US aims to boost its global chip share to 14% by 2032 — up from the current 10%.

• The CHIPS Act allocates $39B in grants, $75B in loans, and 25% tax credits to incentivize semiconductor firms to build factories in the US.
• By 2032, the US plans to produce nearly 30% of the world’s advanced logic chips — an impressive jump from the 0% right now.

Global competition intensifies: The US faces competition from China and the EU, both of which are ramping up their chipmaking capabilities. Moreover, the ongoing labor shortage of construction workers, technicians, and electricians could also complicate the building and operation of new manufacturing plants. Despite these hurdles, US Commerce Secretary Gina Raimondo remains optimistic, projecting that the country will manufacture one-fifth of the world’s advanced logic chips by the decade’s end.