Decoding the Updated CHIPS Act: What’s Changed?

Quick Summary:

• The U.S. CHIPS and Science Act of 2022 was designed to revive advanced manufacturing in semiconductors, boost domestic chipmaking activities, and strengthen related supply chains.
• By October 2024, federal negotiations resulted in over 30 proposed deals for projects under the act.
• in the two months before the inauguration of Donald Trump as President in 2025, these proposals led to awards totaling more than $30 billion thru the CHIPS Office.
• Activity around implementations has slowed following Trump’s administration taking office,which is typical during transitions as priorities are reassessed.
• Experts like Russell Harrison from IEEE-USA beleive this pause is temporary while Congress works on securing funding for R&D and workforce-growth programs tied to manufacturing gains achieved so far.

Indian Opinion Analysis:
The U.S.-led efforts under the CHIPS Act showcase a global intensification in semiconductor self-reliance strategies-critical amid geopolitical uncertainties and supply chain vulnerabilities. India’s plans for semiconductor manufacturing may intersect with these developments as opportunities arise for collaboration or competition with leading nations like America pursuing similar goals aggressively. For India, observing how governance transitions impact industrial policy stability could inform its approach toward large-scale initiatives such as its own Production Linked Incentive (PLI) scheme aimed at bolstering domestic electronics production capacity.

Read More: CHIPS Act Map