CHIPS and Science Act
In plain wordsA 2022 US law that put tens of billions of dollars into building computer-chip factories and chip research in the United States, to reduce dependence on chips made in Asia.
A US statute, signed on August 9, 2022, that subsidizes domestic chipmaking and authorizes larger public science budgets. Its semiconductor core of about $52.7 billion comprises $39 billion in incentives for new or expanded fabs, about $11 billion for research and development (among it a National Semiconductor Technology Center and an advanced packaging program) and smaller sums for workforce and supply-chain security; a separate 25% investment tax credit supports semiconductor manufacturing, and science authorizations bring the total to roughly $280 billion. Recipients accepted 'guardrails' restricting expansion of advanced chipmaking in China and other countries of concern for ten years. Large awards went to Intel, TSMCTSMC, prop. n.: The Taiwanese company that manufactures most of the world's advanced computer chips, including nearly all of the specialized chips used to train and run AI., Samsung and Micron for plants in Arizona, Texas, Ohio and New York, among others. The science provisions authorized higher budgets for the National Science Foundation, a new technology directorate and regional tech hubs. The Trump administration renegotiated some awards, converting part of Intel's grants into a federal equity stake of about 10% in August 2025, and a 2025 budget law raised the tax credit to 35%.
The fab qualified for CHIPS and Science Act grants only after agreeing to the China guardrails.
Origin
Grew out of the CHIPS for America Act (2020) and the Senate's Endless Frontier Act (2021, Chuck Schumer and Todd Young); passed by Congress in July 2022 and signed by President Joe Biden.
Usage note
Not an AI law, but central to AI policy because nearly all leading-edge AI chips are fabricated in Taiwan. Often paired with export controls on AI chipsexport controls on AI chips, n.: Government rules that limit which countries and companies may buy the most advanced AI chips and the machines used to make them. The United States uses them mainly to slow China's progress in AI. as the 'promote' and 'protect' halves of US semiconductor strategy.
Related
- semiconductor foundrysemiconductor foundry, n.: A factory company that manufactures chips designed by other companies. Taiwan's TSMC, the largest, makes nearly all of the world's most advanced AI chips.
- TSMCTSMC, prop. n.: The Taiwanese company that manufactures most of the world's advanced computer chips, including nearly all of the specialized chips used to train and run AI.
- export controls on AI chipsexport controls on AI chips, n.: Government rules that limit which countries and companies may buy the most advanced AI chips and the machines used to make them. The United States uses them mainly to slow China's progress in AI.
- compute governancecompute governance, n.: Using control over the computer chips and data centers that AI depends on — who can buy them, where they go, how they are used — as a way to oversee powerful AI.
- AI acceleratorAI accelerator, n.: Any chip built or tuned to speed up AI — graphics chips, Google's TPUs, phone 'neural engines' and many startup designs. Such chips do the heavy math of training and running models.
Defined in law or standards
CHIPS and Science Act, Pub. L. No. 117-167 (2022)
Mentioned in
export controls on AI chipsexport controls on AI chips, n.: Government rules that limit which countries and companies may buy the most advanced AI chips and the machines used to make them. The United States uses them mainly to slow China's progress in AI., semiconductor foundrysemiconductor foundry, n.: A factory company that manufactures chips designed by other companies. Taiwan's TSMC, the largest, makes nearly all of the world's most advanced AI chips., TSMCTSMC, prop. n.: The Taiwanese company that manufactures most of the world's advanced computer chips, including nearly all of the specialized chips used to train and run AI.