September 01, 2022

CHIPS Act is signed into law

CHIPS Act is signed into law

By: Sydney Sheffield

The Creating Helpful Incentives to Produce Semiconductors for America Act or the CHIPS and Science Act of 2022 was passed by both the House and Senate with bipartisan support. President Joe Biden signed the bill into law on August 9, 2022. The Act will strengthen American manufacturing, supply chains, and national security while investing in research and development, science and technology, and the workforce of the future to keep the United States as the international leader in specific industries.

“This CHIPS and Science legislation strengthens our nation’s commitment to science and technology by incentivizing investment in the U.S. semiconductor industry, advancing American innovation, and bolstering our leadership on the global stage,” said Sudip Parikh, CEO and Executive Publisher, Science Journals at the American Association for the Advancement of Science (AAAS). “Investments in science are a down payment on our future. This legislation will help us propel discovery, build on our strengths, and show yet again what American investment, intellect, ingenuity, and risk-taking can accomplish for the benefit of all.”

The CHIPS and Science Act will:

  • Bolster U.S. leadership in semiconductors
  • Promote U.S. innovation in wireless supply chains
  • Advance U.S. global leadership in the technologies of the future
  • Catalyze regional economic growth and development
  • Provide STEM opportunities to more of America to participate in good-paying skilled jobs
  • Drive opportunity and equity for all of America in STEM and innovation

“By passing the CHIPS Act, Congress has risen to a defining challenge of our time, seized a historic opportunity to fortify American semiconductor manufacturing, design, and research, and delivered a big win for our country,” said the Semiconductor Industry Association. “The bill’s investments in chip production and innovation will strengthen America’s economy and national security – both of which rely heavily on chips – and reinforce our country’s semiconductor supply chains.”

The bill brings good news for science, authorizing $81 billion for the National Science Foundation (NSF) over five years. This means NSF’s budget could double by 2027. The CHIPS and Science Act will also create government-wide guidelines for foreign talent programs by creating the Office of Research Security and Policy at NSF, among other programs and tasks.

“The bill establishes an International Technology Security and Innovation Fund, including $100 million annually over five years for the State Department, which will allow us to support secure semiconductor supply chains as well as the development and adoption of secure telecommunications networks,” said Secretary of State Antony J. Blinken, in a press release. “This fund will help deepen efforts with key allies and partners in alignment with this historic domestic investment in these critical technology areas.”

Read the White House Fact Sheet here.