One year after the signing of the CHIPS Act, no federal funding has been allocated to tech companies.
- On August 9, 2022, President Joe Biden signed the CHIPS and Science Act of 2022.
- The $52.7 billion bill is set to help reshore semiconductor companies in the U.S.
- As CNBC reports, major tech companies say the funds have yet to be received.
- Companies like Integra, Intel, and SkyWater are reliant on funds to meet expansion goals.
Why It’s Important
President Biden’s signing of the CHIPS Act was one of his largest legislative achievements last year, setting aside billions of dollars for semiconductor research and development in an effort to help divert production away from China and create thousands of jobs—strengthing American manufacturing and national security interests in the process.
With China’s military aggression in the South China Sea threatening America’s primary source of semiconductor chips in Taiwan, the U.S. is eager to tighten supply chains and access to vital components necessary for military equipment, artificial intelligence hardware, and computers.
$231 billion in private sector investments were announced in the aftermath of the bill’s signing, with large domestic factories and plants beginning the early stages of planning. However, tech companies are still awaiting this windfall of cash in order to move forward.
The Department of Commerce is currently evaluating CHIPs applications, noting that they have received roughly 460 inquiries and that many may go unapproved. Secretary of Commerce Gina Raimondo claims the money will be distributed later this year.
As we previously reported, Nvidia saw a historic market rally in May as demand for artificial intelligence skyrocketed demand for chips.