On August 9, 2022, President Biden signed the CHIPS and Science Act, aimed at providing funding and investment to semiconductor companies in the United States to enhance the country's competitiveness in semiconductor manufacturing and research.
While this act appears to promote industrial development, it's also a strategy for the US to seek global dominance in computing power, aiming to curb the rise of Eastern powers and further consolidate its global hegemony.
In the short term, the direct effect of this act has been to boost the US economy and alleviate the crises and risks it faces.
In the long term, it contributes to establishing a new global semiconductor system dominated by the US to counter the development of Eastern powers.
Two years have passed since the enactment of this act, and people are now paying attention to how much subsidy funding has been allocated and to whom it has been distributed.
According to preliminary data, the total subsidy amount under this act may reach $52.7 billion, supporting semiconductor research, development, manufacturing, and labor development.
Among these, $39 billion is for the construction and expansion of semiconductor manufacturing facilities, $11 billion for the development of national semiconductor technology centers and other research institutions, and an additional $2 billion for developing the talent and technical workers needed for the semiconductor industry.
Additionally, the act provides a 25% tax credit for investments in semiconductor manufacturing equipment.
As of 2024, confirmed subsidy funds have exceeded $33 billion, becoming an important source of US GDP growth.
While some are concerned about the prospects of the US economy (such as the 2023 US banking crisis), the US economy actually grew in 2023, and the economic gap between the US and China widened in US dollar terms.
Therefore, it's undeniable that industrial stimulus measures like the chip act have a huge positive impact on GDP.
Recent reports show that the Biden administration's chip act primarily funded several large companies.
So far, four leading semiconductor manufacturers have received the majority of the $33 billion, including Intel, TSMC, Samsung, and Micron.
These companies have invested in building multiple chip manufacturing plants in the US.
Among them, Intel is one of the largest beneficiaries, receiving $8.5 billion in funding for projects in multiple states.
TSMC received $6.6 billion in direct funding for building three chip manufacturing plants in Arizona.
Samsung received $6.4 billion for building semiconductor manufacturing facilities in Texas. Micron also received over $6.1 billion in funding for building two manufacturing plants in New York and Idaho.
Apart from large companies, several billion dollars will be used to support small semiconductor companies in the US.
The US government's goal is clear: to enhance the resilience and economic security of the US-dominated semiconductor supply chain by attracting more private investment.
Therefore, the Biden administration's chip act has been very successful, not only stimulating the US economy in the short term but also helping to establish a US-dominated semiconductor industry supply chain system in the long term, further solidifying the country's global position.
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