World-wide supply chain shortages and fears of dependence on production of semi-conductor chips from abroad leads the US to pursue manufacturing domestically. Legislatively, since 2020, China’s technological lofty ambitions are fostering bipartisan agreement for US chip manufacturing within the United States Washington. Lawmakers are currently working to pass legislation investing tens of billions of dollars in America’s semiconductor industry over the next five to 10 years to help the United States retain a domestic edge. 

If passed, The CHIPS Act, provides substantial funding for the semiconductor industry, which manufactures chips that control our electronic devices from smartphones to fitness trackers. Previously the United States has largely focused on chip research, if passed, the CHIPS Act, puts a heavy emphasis on domestic manufacturing. A focal point of the bill will put more than $22.8 billion toward the industry. This will serve as a kind of i trust fund for federal grants to match state subsidies to encourage new factories. 

In January, Intel has made large moves to occupy the Chip manufacturing arena. The company announced a 20 billion dollar plan for a new a new chip manufacturing plant in Ohio.  

Patrick Gelsinger, Intel’s new chief executive, has rapidly increased the company’s investments in manufacturing to help reduce U.S. dependence on foreign chip makers. Gelsinger said Intel hopes to invest as much as $100 billion over a decade to build up to eight factories on the Ohio campus, linking the scope and speed of that expansion to expected federal grants if Congress approves a spending package known as the CHIPS Act. 

“We are putting our chips on the table,” Mr. Gelsinger said at White House event on Friday. “But this project will be bigger and faster with the CHIPS Act.” This expansion back into US manufacturing will likely have large ripple effects abroad if the United States is able to reclaim a competitive seat as the world’s chip supplier.