In March 2024, Intel was awarded substantial financial support from the U.S. government under the “CHIPS and Science Act”, receiving a combination of subsidies and loans amounting to nearly $20 billion. This support represents the largest allocation to a single semiconductor manufacturer since the enactment of the CHIPS Act, signaling a significant commitment by the U.S. to revitalize its domestic semiconductor industry.
Other major players in the semiconductor sector, including Micron Technology, TSMC, and Samsung Electronics, are also expected to receive support, albeit at lower levels than Intel. This strategic funding initiative is part of a broader U.S. effort to secure a 20% share of the global advanced semiconductor market by 2030, a target set by U.S. Secretary of Commerce Gina Raimondo.
The CHIPS Act overall has allocated $38 billion in subsidies aimed specifically at enhancing U.S. production capacities for advanced semiconductors. Prior allocations under this act have included $35 million to BAE Systems for expanding a semiconductor facility in New Hampshire, and $100 million to Microchip Technology to enhance microcontroller production in the U.S., among other grants.
The push for increased domestic production capacity comes in response to heightened geopolitical tensions and supply chain vulnerabilities, which were prominently highlighted during the COVID-19 pandemic. This has spurred not only the U.S. but also other nations to develop more robust and self-sufficient semiconductor industries.
Despite these efforts, industry experts suggest that the current level of investment under the CHIPS Act may still be insufficient to meet the ambitious growth targets for 2030. They argue that achieving these goals will require not only continued financial investment but also a concerted effort to support all major players in the industry, including those based in Asia that are expanding their manufacturing capabilities within the U.S.
