Semiconductor Manufacturing: The US CHIPS Act Update

The global race for technological dominance is currently centered on a single component: the semiconductor. Since the passing of the CHIPS and Science Act in 2022, the United States has launched an aggressive campaign to bring chip manufacturing back to American soil. We are moving past the initial announcements and entering a phase of heavy construction, massive grants, and concrete timelines. Here is the current status of the major fabrication plants, or “fabs,” rising across the country.

The Financial Landscape: Where the Money Went

The Department of Commerce has been actively allocating the $39 billion in direct grant funding authorized by the CHIPS Act. As of late 2024, the government has announced over $30 billion in proposed funding to support these massive infrastructure projects.

This money is not just for building empty shells. It is designed to incentivize companies to bring their most advanced process technologies—specifically 2-nanometer and 3-nanometer logic chips—to the US. Previously, 100% of these leading-edge chips were manufactured in Asia. The goal is to produce 20% of the world’s leading-edge logic chips in the US by the end of the decade.

TSMC Arizona: The Desert Giant

Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest contract chipmaker. Their project in Phoenix, Arizona, is arguably the most significant foreign direct investment in US history.

The Status Report:

  • Total Investment: TSMC has increased its total planned investment to $65 billion.
  • Government Award: The company secured up to $6.6 billion in direct funding and approximately $5 billion in loans.
  • Fab 1: The first facility is nearly complete. It is currently in the testing phase and expects to begin mass production of 4-nanometer chips in the first half of 2025.
  • Fab 2: Construction is underway. This facility will produce even more advanced 3-nanometer and 2-nanometer chips, with production scheduled for 2028.
  • Fab 3: A newly announced third plant is slated for operation by the end of the decade.

While there were initial reports of culture clashes and labor disputes, the project is moving forward. TSMC is currently hiring engineers and technicians to staff these massive cleanrooms.

Intel: The "Silicon Heartland" and Beyond

Intel received the largest single award from the CHIPS Act, totaling up to $8.5 billion in grants and $11 billion in loans. Their expansion is nationwide, but the spotlight is firmly on Ohio.

New Albany, Ohio: Intel is transforming a site near Columbus into what they call the “Silicon Heartland.”

  • Scope: Two leading-edge chip factories are under construction.
  • Timeline Shifts: Originally slated to come online in 2025, production has been pushed back. The current target for the Ohio site is late 2026 or 2027. This delay is attributed to slow market conditions and the complexities of setting up a new ecosystem from scratch.
  • Construction Progress: Despite the operational delay, the physical construction is active. The “super loads” of heavy equipment began arriving in early 2024.

Arizona, New Mexico, and Oregon: Intel is also expanding its Ocotillo campus in Chandler, Arizona, and modernizing facilities in New Mexico and Oregon. The Oregon site remains Intel’s primary hub for research and development (R&D).

Samsung: Expanding the Texas Footprint

Samsung Electronics has long maintained a presence in Austin, Texas. Now, they are building a massive new cluster in nearby Taylor, Texas.

The Deal: Samsung was awarded up to $6.4 billion in direct funding. In exchange, they committed to expanding their total investment in the region to approximately $45 billion.

Project Specifics:

  • Taylor Site: This location will host two new logic fabrication plants, an R&D facility, and an advanced packaging facility. Advanced packaging is a critical bottleneck in the supply chain that binds different chips together to boost performance.
  • Timeline: Like Intel, Samsung has adjusted its schedule. Mass production at the first Taylor fab, originally expected in 2024, is now projected for 2026.
  • Technology: These plants are designed to produce chips for high-performance computing and artificial intelligence, utilizing 2-nanometer and 4-nanometer process nodes.

Micron: Bringing Memory Manufacturing Home

While TSMC and Intel focus on logic chips (the “brains”), Micron Technology focuses on memory (the storage). Currently, very little memory manufacturing happens in the US. Micron aims to change that with a massive project in New York.

Clay, New York: Micron plans to build a “megafab” complex in Clay, near Syracuse.

  • Scale: The company plans to build four massive cleanroom facilities over the next 20 years.
  • Funding: Micron received a preliminary award of up to $6.1 billion.
  • Timeline: Site preparation is beginning, with construction on the first fab expected to start in 2025. Production is targeted for 2028 or 2029.

Boise, Idaho: Micron is also building a manufacturing fab co-located with their R&D headquarters in Boise. Concrete pouring began in 2024, and the facility is expected to be operational by 2026.

GlobalFoundries and Legacy Chips

Not all chips need to be leading-edge. The chips used in automobiles, defense systems, and household appliances use mature “legacy” technologies. GlobalFoundries is the key player here.

  • Award: The company received $1.5 billion in direct funding.
  • Malta, New York: They are building a new fab to double their existing capacity and modernizing their current facility to produce chips for the automotive industry.
  • Burlington, Vermont: Funding is also directed toward revitalizing their Vermont fab to produce next-generation gallium nitride (GaN) semiconductors, which are essential for electric vehicles and power grids.

Challenges and Roadblocks

While the money is flowing and steel is rising, the “fab boom” faces hurdles.

  1. Labor Shortages: The construction industry is struggling to find enough skilled workers to build these specialized facilities. Once built, there is a projected shortage of electrical engineers and technicians to run them.
  2. NEPA Reviews: Environmental reviews required by the National Environmental Policy Act (NEPA) can take years. However, in late 2024, President Biden signed a bill to exempt certain semiconductor projects from some of these lengthy reviews to speed up construction.
  3. Market Fluctuations: A temporary dip in demand for PC and smartphone chips caused companies like Intel to slow down their capital expenditure, pushing project timelines to the right.

Frequently Asked Questions

When will the new US chip factories start producing chips? Most of the major new facilities, including TSMC in Arizona and Samsung in Texas, are targeting 2025 and 2026 for initial mass production. Full operational capacity for the larger “megafabs” (like Micron in New York) will ramp up closer to 2028 and 2029.

Will these factories lower the price of electronics? Not necessarily. The primary goal of the CHIPS Act is supply chain resilience and national security, not cost reduction. US manufacturing is generally more expensive than Asian manufacturing. However, it protects the US economy from price spikes caused by geopolitical conflicts or supply chain disruptions.

Are these jobs only for engineers with PhDs? No. While advanced engineering roles are critical, roughly 40% to 60% of the jobs in a fabrication plant are for technicians. These roles typically require a two-year associate degree or a specialized certificate, not a four-year university degree.

How much of the world’s chips are currently made in the US? Before the CHIPS Act, the US produced roughly 10% to 12% of the global supply, down from 37% in 1990. The goal is not to manufacture 100% of chips domestically but to secure a viable percentage of the most advanced technology.