Since the passage of the CHIPS and Science Act last August, eight companies have already received more than half of the planned government direct funding. These companies have collectively received $29.34 billion in funding through the CHIPS Act for semiconductor factories across the country. The law, a $280 billion package to support innovation in the US, includes $52 billion in subsidies for semiconductor manufacturing and was passed last year.
received $6.6 billion in funding, while Samsung rounded out the top three with $6.4 billion from the US government. The CHIPS Act is intended to restart the US semiconductor industry and start competing against Chinese dominance in the chip manufacturing space.
, one of the CHIPS Act beneficiaries, earmarked $44 billion in 2022, up from $31 billion in 2021, just to expand its chip-making capacity. The Semiconductor Industry Association says in an email to The Verge that the industry garnered more than $450 billion in private investments after the announcement of the CHIPS Act, and it expects it to grow even further. Demand for chips has grown as generative AI models, which are primarily trained using powerful chips, have also grown in prominence.