2023 CHIPS Act
One year after the CHIPS and Science Act was signed into law the semiconductor industry is waiting for money to be allocated, but plenty has happened.
The CHIPS and Science Act is an industrial strategy to revitalize the research, development, and manufacturing of semiconductors within the United States. The US makes 12 percent of the world’s semiconductors, down from 37 percent in the 1990s. As demand continues to grow, the US does not want to rely on foreign manufacturers for supply and innovation.
The Chips Act approval will provide $278.2 billion of spending over 10 years which, in dollar terms, is the largest 5-year investment in R&D in American history. The Act provides $52.7 billion for American semiconductor research and development, manufacturing, and workforce training. This includes $39 billion in manufacturing incentives, including $2 billion for the legacy chips used in automobiles and defense systems,$13.2 billion in R&D and workforce development, and $500 million to provide for international information communications technology security and semiconductor supply chain activities.
The CHIPS Act also authorizes $10 billion to be invested in regional innovation and technology hubs to be dispersed geographically across 20 markets in the US. The Hubs will provide collaboration between state and local governments, colleges and universities, labor unions, private sector businesses, and community-based organizations to create regional partnerships to develop innovation, technology, and manufacturing opportunities.
Download the full report to learn more about the CHIPS Act and its implications for commercial real estate.