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The CHIPS and Science Act aims to build a domestic US supply chain for semiconductor chips.
The CHIPS and Science Act, signed into law August 9, 2022, includes $52 billion in chips manufacturing incentives made up of funding for semiconductor manufacturing subsidies, grants and loans. $24 billion of the incentives is marked to be spent in fiscal 2022, of which as much as $6 billion could be used to cover the cost of direct loans and loan guarantees and $2 billion for facility investments to support advanced fabrication, assembly and other activities at "mature technology nodes."
The legislation also includes an "advanced manufacturing investment credit" - a 25% investment tax credit for investments in semiconductor manufacturing. It includes incentives for the manufacturing of semiconductors, as well as for manufacturing of specialized tooling equipment required in the semiconductor manufacturing process, with taxpayers allowed to treat the credit as a payment against tax ("direct pay").
The legislation authorizes $102 billion over five years for the National Science Foundation (NSF), the Commerce Department and the National Institutes of Standards and Technology to increase investments in R&D.
Summary
The legislation is a significant step designed to impact supply chains, economic investment and overall dependance on manufacturers outside the US.
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