The CHIPS Act Won’t Reduce the U.S.’s Strategic Reliance on the Global Semiconductor Sector

The latest U.S. bill to support the domestic semiconductor industry will struggle to reduce the United States’ reliance on foreign chipmakers and suggests Congress is unwilling to impose strict controls on companies looking to invest in China. On July 27, lawmakers in the U.S. Senate passed the $280 billion the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, which subsidizes U.S.-made semiconductor chips and boosts investments in cutting-edge science and technology initiatives. U.S. President Joe Biden strongly supports the bill, which he argues will create more jobs for Americans by incentivizing more firms to manufacture chips in the United States. The U.S. House of Representatives passed the bill on July 28, sending it to Biden’s desk. ...