Dial P for Procurement Crossover: Does the CHIPS Act provide the Helpful Incentives the U.S. needs?

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On July 27th, the Senate passed the CHIPS and Science Act of 2022. It is now awaiting President Biden’s signature. Proponents of the bill say it will reduce U.S. dependence on foreign producers of semiconductor chips by building manufacturing capabilities at home. Skeptics – which oddly include both progressive Vermont Senator Bernie Sanders and conservative Republicans – say it amounts to “corporate welfare.” So who is right?

The CHIPS in the CHIPS Act stands for ‘Creating Helpful Incentives to Produce Semiconductors.’ But are the incentives, and the resulting changes, actually “Helpful” for the U.S. semiconductor industry?

In this Dial P for Procurement crossover episode, Kelly Barner digs into the global semiconductor market and talks about some relevant considerations not covered in the language of the legislation:

• What’s in the bill?

• What can and can’t be done with the funding?

• Why has U.S. semiconductor manufacturing capacity has been falling since the 1990s?

• How long will it take to see the benefits?

• And issues like sustainability and intellectual property that still have to be resolved before this bill can achieve the ultimate vision.

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This episode is hosted by Kelly Barner. For additional information, please visit our dedicated show page at: https://supplychainnow.com/dial-p-procurement-CHIPS-act-961

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