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In 2015, China publicly declared its intention to become completely self-sufficient in semiconductors as part of its 'Made in China 2025' policy.
The United States' share of global semiconductor manufacturing declined from nearly 100% at the technology's inception to approximately 10%.
The CHIPS and Science Act included both a 25% fully refundable tax credit for eligible capital expenditures and a competitive grant program for semiconductor manufacturing.
The CHIPS and Science Act allocated $39 billion for a competitive grant program to provide direct funding to semiconductor companies.
A key priority for the CHIPS Program Office was to incentivize the creation of multiple manufacturing clusters for advanced logic foundry production within the United States.
The CHIPS Program Office prioritized incentivizing domestic production of advanced memory chips, particularly DRAM, and advanced packaging capabilities.
Over 90% of the world's leading-edge semiconductor foundry manufacturing is concentrated in Taiwan and performed by a single company, TSMC.
The most advanced processors in Apple's iPhones and the GPUs in NVIDIA's AI accelerators are almost exclusively manufactured by TSMC in Taiwan.
The $39 billion in grant funding from the CHIPS and Science Act is insufficient to completely eliminate the U.S. semiconductor supply chain's dependence on Taiwan.
The U.S. government reports that the $39 billion in committed funds from the CHIPS and Science Act has leveraged over $600 billion in announced private sector investments.
All five leading-edge semiconductor manufacturers—TSMC, Samsung, Intel, SK Hynix, and Micron—have committed to establishing large-scale manufacturing operations in the United States following the passage of the CHIPS and Science Act.
The CHIPS and Science Act has largely failed to attract high-volume manufacturing of mature node semiconductors to the United States.