The CHIPS and Science Act, supported by the Biden administration, has been pivotal in securing investments to reduce reliance on Asian chipmakers and increase U.S. chip production. As of August 2024, the Act had provided $30 billion for 23 projects across 15 states, creating 115,000 jobs and enabling the U.S. to produce 30% of the world's most advanced chips. The Commerce Department has pledged up to $6.6 billion to help TSMC expand its Arizona facilities. However, Trump's stance on tariffs and government contracts could disrupt these efforts, potentially leading to higher consumer prices and challenges in advancing AI technology.
Key takeaways:
- President Trump's threats to impose tariffs on semiconductors and alter government contracts may hinder U.S. competitiveness in AI research.
- The CHIPS and Science Act, supported by the Biden administration, aims to boost U.S. chip manufacturing and reduce reliance on Asian suppliers.
- The Commerce Department has pledged significant funding to support U.S. chip production, including $6.6 billion for TSMC's expansion in Arizona.
- Experts warn that tariffs on chips could lead to higher consumer prices for goods reliant on semiconductors, such as smartphones and automobiles.