The Chips Act was passed August of 2022 with the purpose of increasing investment in the U.S., manufacturing, supply chain, National Security, and workforce development. In essence, the bill offers funding for semiconductor research, development, manufacturing, and workforce development. In addition to direct funding, the act offers a 25% investment tax credit for the manufacturing of semiconductors.
Thus far, the act has fulfilled its purpose of increasing investment in America and creating jobs in the construction of new manufacturing facilities as well as 642,000 new manufacturing jobs since 2021. In addition, since the passing of the act, the construction of new manufacturing facilities has increased 116 percent over last year. One of these manufacturing facilities of note is the Intel Semiconductor Plant.
The Chips Act was a fundamental piece of legislation for Intel Semiconductor Plant in New Albany, Ohio. Intel initially held off confirming the project until the Chips Act was signed in August 2022 due to the immense impact the act had on the financial and tax status of the projects. Since the passing of the act, Intel has since begun construction on its semiconductor facility, which is set to create up to employ up to 7,000 workers in its construction.
To learn more, visit The White Houses’ press release here: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/09/fact-sheet-chips-and-science-act-will-lower-costs-create-jobs-strengthen-supply-chains-and-counter-china/.