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Architect of CHIPS Act Speaks on Its Impact

EETimes

Our objective was that TSMC’s announcement would provide the necessary impetus to spark four additional areas to further fortify a trusted supply chain. First, it would attract TSMC ecosystem suppliers, which it has.

Second, it would persuade other chipmakers, particularly Intel and Samsung, to get off the dime and to build in the U.S., which has happened in a big way. In less than a year, Intel CEO Pat Gelsinger announced a $20 billion investment in Chandler, Arizona. Then Samsung came in with a $17 billion investment in Texas. And recently, Intel’s investing $20 billion in my home state of Ohio, which could grow to be $100 billion.

Third, we hoped to spur universities to start programs in semiconductor engineering. My alma mater, Purdue, has just announced a master’s degree program in semiconductor engineering.

Fourth, we also believed TSMC was the crucial catalyst to design a bipartisan bill (CHIPS for America) providing the necessary funding to bring back American semiconductor manufacturing.

We also hoped the deal would inspire Congress to pass the bipartisan Endless Frontier Act that we architected with Senate Majority Leader Charles Schumer and Senator Todd Young back in November 2019 to boost investment in high-tech research. Now these two bills are combined to make up the CHIPS and Science Act. It was good karma.

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History of the CHIPS and Science Act

The bipartisan $280B Chips and Science Act in essence merged the Endless Frontiers Act and the Chips for America Act -- a vital element of our mission to drive economic growth, maximize national security and combat China’s techno-economic aggression.