# CHIPS and Science Act of 2022: Enhancing U.S. Manufacturing
Written on
Chapter 1: Introduction to the CHIPS and Science Act
The Biden Administration has initiated a comprehensive industrial strategy during its first year to revitalize domestic manufacturing, generate high-quality jobs for Americans, enhance supply chains, and accelerate advancements in technology sectors. Since 2021, the manufacturing industry has witnessed a remarkable resurgence, adding 642,000 jobs. Companies are increasingly investing within the nation, leading to the revival of lucrative manufacturing positions. In the past year alone, there has been a staggering 116% increase in the establishment of new manufacturing facilities.
The bipartisan CHIPS and Science Act of 2022 was signed into law by the President on August 9, 2022, to build upon this momentum and make unprecedented investments. This legislation positions American workers, communities, and businesses to excel in the 21st-century competition. It aims to bolster American manufacturing, supply chains, and national security while investing in research and development, science and technology, and the workforce of tomorrow. With the enactment of the CHIPS and Science Act, the U.S. is set to maintain its competitive edge for the future.
The initial video provides insights into the tax incentives for manufacturers introduced by the CHIPS Act of 2022.
Chapter 2: Investment in Semiconductor Manufacturing
Since the passage of the CHIPS and Science Act, semiconductor companies have committed approximately $50 billion in additional investments in U.S. semiconductor manufacturing, raising the total investment to around $150 billion since President Biden took office. Notable investments include Micron's $40 billion commitment to memory chip production, which is expected to create up to 40,000 new manufacturing and construction jobs. This investment will significantly enhance the U.S. market share in memory chip production from under 2% to as much as 10% over the next decade.
Furthermore, GlobalFoundries is expanding its facility in upstate New York through a $4.2 billion partnership with Qualcomm to produce semiconductors. Qualcomm, the leading fabless semiconductor manufacturer globally, has plans to increase its domestic semiconductor production by up to 50% in the next five years.
The second video showcases President Biden signing the CHIPS and Science Act of 2022 at The White House.
Chapter 3: Securing America’s Technological Future
The CHIPS and Science Act is poised to advance semiconductor research, development, and manufacturing in the United States, ensuring that American technology remains competitive in a field that is critical to various sectors, from automotive to defense systems. Although the U.S. pioneered the semiconductor industry, it now produces only 10% of the global supply, with none of the most advanced chips manufactured domestically. Currently, 75% of the world's semiconductor production is concentrated in East Asia. The CHIPS and Science Act is expected to facilitate hundreds of billions more in private investments in semiconductor manufacturing across the nation, especially for essential sectors and national defense.
This legislation also ensures that the United States maintains and expands its leadership in technology and science. During the 1960s, the federal government allocated 2% of GDP to research and development, but by 2020, this figure had dwindled to less than 1%. Over the past four decades, economic growth has largely benefited a limited number of coastal regions, leaving many behind. The CHIPS and Science Act aims to create opportunities for all Americans, particularly those historically marginalized in science and technology.
If you found this article informative, please consider following my profile for future updates.