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Early Impact of the CHIPS Act

This article describes certain key developments in the period from passage of the CHIPS Act through the present day, and provides a brief survey of key grantmaking and investment activity by U.S. government agencies since passage of the Act.

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The Creating Helpful Incentives to Protect Semiconductors Act (the CHIPS Act or the Act) was signed into law in August 2022, providing for a total of $52.7 billion in appropriations from 2023 through 2027. This article describes certain key developments in the period from passage of the CHIPS Act through the present day, including a summary of commitments by semiconductor companies to increase capital investment in the United States (possibly reflecting incentives created by the legislation). We also provide a brief survey of key grantmaking and investment activity by U.S. government agencies since passage of the Act. Finally, we discuss the Act’s likely future, as well as analogous policy developments in critical East Asian manufacturing centers.

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