Fact of the Week: US Manufacturing Commitments Double in Response to Subsidies in the CHIPS and Sciences Act and the IRA

Source: Amanda Chu and Oliver Roeder, “US manufacturing commitments double after Biden subsidies launch,” Financial Times, April 16, 2023.

Commentary: According to data compiled by the Financial Times, companies have committed more than $200 billion to U.S. manufacturing projects since the passage of the CHIPS and Sciences Act and the Inflation Reduction Act last year. The value of semiconductor and clean-energy technology investment commitments made between August 2022 and March 2023 was almost double the corresponding figure for the whole of 2021. The Financial Times also estimates that these projects will create 82,000 jobs. While most of the commitments come from domestic companies, approximately one-third are from foreign companies—particularly Japan, South Korea, and Taiwan.