Officials Juggle Several US Goals as They Award CHIPS Money

The effectiveness of the policy to draw more chipmakers to the country has become complicated by global events, said Rob Atkinson, president of the Information Technology and Innovation Foundation, a think tank that has supported the subsidy program.

As Congress worked to pass legislation last year, other countries, including Japan, Canada and the European Union, created their own incentives to attract chip makers, “making it harder for the U.S. to compete for fab and related investment," Atkinson said.

Congress debated the legislation during a severe shortage driven by the COVID-19 pandemic. Since then, “we went from chip shortage to worries of industry sales slowdown” because of a glut, Atkinson said. “But we deal with the hand we are dealt, and hopefully the multinationals will make large capital investments here in the U.S.”