CHIPS and Science Act

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The bill constitutes an industrial policy initiative which takes place against the background of a perceived [[Artificial Intelligence Cold War|AI Cold War]] between the US and China, as [[artificial intelligence]] technology relies on semiconductors.<ref>{{Cite news |last=Herman |first=Arthur |date=17 October 2022 |title=The Chip War With China Is Just Getting Started |work=Forbes |url=https://www.forbes.com/sites/arthur...hina-is-just-getting-started/?sh=4224c4346a08 |access-date=8 January 2023 |archive-date=January 8, 2023 |archive-url=https://web.archive.org/web/2023010...hina-is-just-getting-started/?sh=4224c4346a08 |url-status=live }}</ref> The bill was considered amidst a [[2020–present global chip shortage|global semiconductor shortage]] and intended to provide subsidies and tax credits to chip makers with operations in the United States. The [[U.S. Department of Commerce]] was granted the power to allocate funds based on companies' willingness to sustain research, build facilities, and train new workers.<ref>{{Cite news |last=Swanson |first=Ana |date=August 3, 2022 |title=Congress Is Giving Billions to the Chip Industry. Strings Are Attached. |work=The New York Times |url=https://www.nytimes.com/2022/08/03/business/economy/chip-industry-congress.html |url-access=subscription |access-date=August 5, 2022 |archive-date=October 21, 2022 |archive-url=https://web.archive.org/web/2022102.../business/economy/chip-industry-congress.html |url-status=live }}</ref>The bill constitutes an industrial policy initiative which takes place against the background of a perceived [[Artificial Intelligence Cold War|AI Cold War]] between the US and China, as [[artificial intelligence]] technology relies on semiconductors.<ref>{{Cite news |last=Herman |first=Arthur |date=17 October 2022 |title=The Chip War With China Is Just Getting Started |work=Forbes |url=https://www.forbes.com/sites/arthur...hina-is-just-getting-started/?sh=4224c4346a08 |access-date=8 January 2023 |archive-date=January 8, 2023 |archive-url=https://web.archive.org/web/2023010...hina-is-just-getting-started/?sh=4224c4346a08 |url-status=live }}</ref> The bill was considered amidst a [[2020–present global chip shortage|global semiconductor shortage]] and intended to provide subsidies and tax credits to chip makers with operations in the United States. The [[U.S. Department of Commerce]] was granted the power to allocate funds based on companies' willingness to sustain research, build facilities, and train new workers.<ref>{{Cite news |last=Swanson |first=Ana |date=August 3, 2022 |title=Congress Is Giving Billions to the Chip Industry. Strings Are Attached. |work=The New York Times |url=https://www.nytimes.com/2022/08/03/business/economy/chip-industry-congress.html |url-access=subscription |access-date=August 5, 2022 |archive-date=October 21, 2022 |archive-url=https://web.archive.org/web/2022102.../business/economy/chip-industry-congress.html |url-status=live }}</ref>
For semiconductor and telecommunications purposes, the CHIPS Act designates roughly $106&nbsp;billion. The CHIPS Act includes $39&nbsp;billion in tax benefits, loan guarantees and grants, administered by the [[United States Department of Commerce]] to encourage American companies to build new chip manufacturing plants in the U.S.<ref>{{Cite web |title=What's in the recently passed CHIPS Act? |url=https://usafacts.org/articles/whats-in-the-recently-passed-chips-act/ |access-date=2022-08-15 |website=USAFacts |language=en |archive-date=October 15, 2022 |archive-url=https://web.archive.org/web/2022101...icles/whats-in-the-recently-passed-chips-act/ |url-status=live }}</ref> Additionally, $11&nbsp;billion would go toward advanced semiconductor research and development, separable into $8.5&nbsp;billion of that total going to the [[National Institute for Standards and Technology]], $500&nbsp;million of the $11 billion to [[Manufacturing USA]], and $2&nbsp;billion of the former to a new public research hub called the National Semiconductor Technology Center. $24&nbsp;billion would go to a new 25 percent advanced semiconductor manufacturing tax credit to encourage firms to stay in the United States, and $200&nbsp;million would go to the [[National Science Foundation]] to resolve short-term labor supply issues.<ref name="McKinsey 2022" /><ref name="CSIS 2022" />For semiconductor and telecommunications purposes, the CHIPS Act designates roughly $106&nbsp;billion. The CHIPS Act includes $39&nbsp;billion in tax benefits, loan guarantees and grants, administered by the DOC to encourage American companies to build new chip manufacturing plants in the U.S.<ref>{{Cite web |title=What's in the recently passed CHIPS Act? |url=https://usafacts.org/articles/whats-in-the-recently-passed-chips-act/ |access-date=2022-08-15 |website=USAFacts |language=en |archive-date=October 15, 2022 |archive-url=https://web.archive.org/web/2022101...icles/whats-in-the-recently-passed-chips-act/ |url-status=live }}</ref> Additionally, $11&nbsp;billion would go toward advanced semiconductor research and development, separable into $8.5&nbsp;billion of that total going to the [[National Institute for Standards and Technology]], $500&nbsp;million of the $11 billion to [[Manufacturing USA]], and $2&nbsp;billion of the former to a new public research hub called the National Semiconductor Technology Center. $24&nbsp;billion would go to a new 25 percent advanced semiconductor manufacturing tax credit to encourage firms to stay in the United States, and $200&nbsp;million would go to the [[National Science Foundation]] to resolve short-term labor supply issues.<ref name="McKinsey 2022" /><ref name="CSIS 2022" />
According to [[McKinsey]], "The CHIPS Act allocates $2 billion to the [[United States Department of Defense|Department of Defense]] to fund microelectronics research, fabrication, and workforce training. An additional $500 million goes to the [[United States Department of State|Department of State]] to coordinate with foreign-government partners on semiconductor supply chain security. And $1.5 billion funds the USA Telecommunications Act of 2020, which aims to enhance competitiveness of software and hardware supply chains of open [[radio access network|RAN]] [[5G]] networks."<ref name="McKinsey 2022">{{Cite web |last1=Badlam |first1=Justin |last2=Clark |first2=Stephen |last3=Gajendragakar |first3=Suhrid |last4=Kumar |first4=Adi |last5=O'Rourke |first5=Sara |last6=Swartz |first6=Dale |date=October 4, 2022 |title=The CHIPS and Science Act: Here's what's in it |url=https://www.mckinsey.com/industries...s/the-chips-and-science-act-heres-whats-in-it |access-date=October 5, 2022 |website=McKinsey & Company |archive-date=October 5, 2022 |archive-url=https://web.archive.org/web/2022100...s/the-chips-and-science-act-heres-whats-in-it |url-status=live }}</ref><ref name="CSIS 2022">{{Cite journal |last1=Kersten |first1=Alexander |last2=Athanasia |first2=Gabrielle |last3=Arcuri |first3=Gregory |date=August 9, 2022 |title=A Look at the CHIPS-Related Portions of CHIPS+ |url=https://www.csis.org/analysis/look-chips-related-portions-chips |access-date=October 5, 2022 |website=Center for Strategic and International Studies |archive-date=October 5, 2022 |archive-url=https://web.archive.org/web/2022100...rg/analysis/look-chips-related-portions-chips |url-status=live }}</ref> Companies are subjected to a ten-year ban prohibiting them from producing chips more advanced than 28-nanometers in China and Russia if they are awarded subsidies under the act.<ref>{{Cite news |last1=Debby Wu |last2=Daniel Flatley |last3=Jenny Leonard |date=August 2, 2022 |title=US to Stop TSMC, Intel From Adding Advanced Chip Fabs in China |work=Bloomberg |url=https://www.bloomberg.com/news/arti...intel-from-adding-advanced-chip-fabs-in-china |access-date=August 13, 2022 |archive-date=May 3, 2023 |archive-url=https://web.archive.org/web/2023050...intel-from-adding-advanced-chip-fabs-in-china |url-status=live }}</ref> As a law affecting national security, the act contains a variety of provisions related to research ethics, foreign talent recruitment, restrictions on [[Confucius Institute]]s, and establishing new research security initiatives in the [[United States Department of Energy]], NIST, and the NSF.<ref name="AAU 2022">{{cite web | title=CHIPS and Science Act Summary of Research Security Provisions | website=Association of American Universities (AAU) | date=September 9, 2022 | url=https://www.aau.edu/sites/default/f...andScienceFinalResearchSecurityProvisions.pdf | access-date=April 28, 2024}}</ref>According to [[McKinsey]], "The CHIPS Act allocates $2 billion to the [[United States Department of Defense|Department of Defense]] to fund microelectronics research, fabrication, and workforce training. An additional $500 million goes to the [[United States Department of State|Department of State]] to coordinate with foreign-government partners on semiconductor supply chain security. And $1.5 billion funds the USA Telecommunications Act of 2020, which aims to enhance competitiveness of software and hardware supply chains of open [[radio access network|RAN]] [[5G]] networks."<ref name="McKinsey 2022">{{Cite web |last1=Badlam |first1=Justin |last2=Clark |first2=Stephen |last3=Gajendragakar |first3=Suhrid |last4=Kumar |first4=Adi |last5=O'Rourke |first5=Sara |last6=Swartz |first6=Dale |date=October 4, 2022 |title=The CHIPS and Science Act: Here's what's in it |url=https://www.mckinsey.com/industries...s/the-chips-and-science-act-heres-whats-in-it |access-date=October 5, 2022 |website=McKinsey & Company |archive-date=October 5, 2022 |archive-url=https://web.archive.org/web/2022100...s/the-chips-and-science-act-heres-whats-in-it |url-status=live }}</ref><ref name="CSIS 2022">{{Cite journal |last1=Kersten |first1=Alexander |last2=Athanasia |first2=Gabrielle |last3=Arcuri |first3=Gregory |date=August 9, 2022 |title=A Look at the CHIPS-Related Portions of CHIPS+ |url=https://www.csis.org/analysis/look-chips-related-portions-chips |access-date=October 5, 2022 |website=Center for Strategic and International Studies |archive-date=October 5, 2022 |archive-url=https://web.archive.org/web/2022100...rg/analysis/look-chips-related-portions-chips |url-status=live }}</ref> Companies are subjected to a ten-year ban prohibiting them from producing chips more advanced than 28-nanometers in China and Russia if they are awarded subsidies under the act.<ref>{{Cite news |last1=Debby Wu |last2=Daniel Flatley |last3=Jenny Leonard |date=August 2, 2022 |title=US to Stop TSMC, Intel From Adding Advanced Chip Fabs in China |work=Bloomberg |url=https://www.bloomberg.com/news/arti...intel-from-adding-advanced-chip-fabs-in-china |access-date=August 13, 2022 |archive-date=May 3, 2023 |archive-url=https://web.archive.org/web/2023050...intel-from-adding-advanced-chip-fabs-in-china |url-status=live }}</ref> As a law affecting national security, the act contains a variety of provisions related to research ethics, foreign talent recruitment, restrictions on [[Confucius Institute]]s, and establishing new research security initiatives in the [[United States Department of Energy]], NIST, and the NSF.<ref name="AAU 2022">{{cite web | title=CHIPS and Science Act Summary of Research Security Provisions | website=Association of American Universities (AAU) | date=September 9, 2022 | url=https://www.aau.edu/sites/default/f...andScienceFinalResearchSecurityProvisions.pdf | access-date=April 28, 2024}}</ref>

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