Will the CHIPS Act kickstart US chip manufacturing?

Is the US creating the best conditions for reestablishing semiconductor manufacturing domestically? Better immigration policies would make a difference, argue Greg Wright, Dany Bahar and Ian Seyal at Brookings Institution. Major suppliers, including GlobalWafers, are announcing new investments in the US, per Bloomberg. But will these investments pan out without CHIPS Act funding? Nikkei Asia explores the question while Axios charts efforts by the Senate to push the Act through Congress. Greg Ip in the Wall Street Journal finds that America’s democracy is struggling to meet the China challenge.

How does this domestic semiconductor push fit into President Biden’s China strategy more broadly? Overseas, the US is working to pressure the Netherlands to stop supplying China with key chip-making equipment, Bloomberg reports. Finally, the Economist provides an overview of the Biden Administration’s emerging China strategy.

Mentioned Publications

Smarter immigration policies could help alleviate the semiconductor shortage – Greg Wright, Dany Bahar and Ian Seyal, Brookings, 17 June 2022
The US is intent on ramping up semiconductor production domestically but has a shortage of workers. Can better immigration policies help?
Taiwan’s GlobalWafers to Build US$5 Billion Chip Plant in Texas – Akayla Gardner and Debby Wu, Bloomberg, 27 June 2022
GlobalWafers becomes the latest semiconductor input manufacturer to set up shop in the US.
Chip giants threaten to scale back U.S. expansion without subsidies – Yifan Yu, Nikkei Asia, 5 July 2022
If the US Congress fails to pass the CHIPS Act, will semiconductor manufacturers complete investments in new US fabrication facilities?
Scoop: Schumer's CHIPS Act gambit – Hans Nichols, Axios, 29 June 2022
US Senator Chuck Schumer tries to engineer a pressure campaign to get the CHIPS Act passed this year.
America’s Gridlocked Democracy Struggles to Meet China Challenge – Greg Ip, The Wall Street Journal, 6 July 2022
Political divides in the US are hampering efforts to pass legislation designed to make America more competitive with China.
US Wants Dutch Supplier to Stop Selling Chipmaking Gear to China – Jillian Deutsch, Eric Martin, Ian King, and Debby Wu, Bloomberg, 5 July 2022
The US government is pressuring the Netherlands to further restrict China’s access to key chip-making equipment.
America rethinks its strategy for taking on China’s economy – The Economist, 6 July 2022
The Biden administration has laid out its policy direction on China, but will their actions fulfill the promises?