---
title: Domestic Semiconductor Fabrication (CHIPS Act)
type: technology
url: "https://www.envisioning.com/research/substrate/usa__chips-act-domestic-fab"
hub: substrate
summary: The $280B CHIPS and Science Act is funding new leading-edge fabs from TSMC (Arizona), Intel, Samsung, and Micron on US soil, reshoring advanced chip production for the first time in decades.
---

# Domestic Semiconductor Fabrication (CHIPS Act)

The $280B CHIPS and Science Act is funding new leading-edge fabs from TSMC (Arizona), Intel, Samsung, and Micron on US soil, reshoring advanced chip production for the first time in decades.
- Technology Readiness Level: 7/9
- Impact: 5/5
- Investment: 4/5
The CHIPS and Science Act represents the largest US industrial policy investment in semiconductor manufacturing since the creation of SEMATECH. TSMC is building three fabs in Arizona with $6.6 billion in CHIPS Act subsidies, targeting 2nm production by 2028. Intel received $8.5 billion for fabs in Arizona, Ohio, Oregon, and New Mexico. Samsung is building a $17 billion fab in Texas. Micron is investing $100 billion over 20 years in New York.

The strategic imperative is clear: the US designs 47% of the world's chips but manufactures only 12%. Leading-edge production is overwhelmingly concentrated in Taiwan (TSMC) and South Korea (Samsung). A disruption to Taiwanese production — whether from natural disaster, Chinese military action, or trade conflict — would cripple global technology supply chains.

Domestic fab capacity also enables classified chip production for defense and intelligence applications. However, the CHIPS Act faces challenges: construction delays, workforce shortages, and the massive capital requirements of maintaining cutting-edge fabrication. The program's success will be measured not just in fabs built but in whether the US can sustain the manufacturing ecosystem needed to stay at the leading edge.

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Source: Envisioning — Technology Research Institute (https://www.envisioning.com/research/substrate/usa__chips-act-domestic-fab)