The CHIPS Act Is Essential. So Is a Resilient EV Battery Supply Chain

This week, both houses of the U.S. Congress approved the $280 billion bill aimed at boosting the semiconductor industry. But opponents object to the $52.7 billion subsidy for semiconductor firms such as Intel to expand their manufacturing facilities when their profits are high and the market is strong. However, if one can look beyond this controversial direct subsidy, the CHIPS and Science Act of 2022 offers a new opportunity to rejuvenate the semiconductor industry that was once dominated by the United States in the 1980s. The bill allocates $11 billion for supporting advanced semiconductor manufacturing research, and a $2 billion fund to support technology transfer from laboratory to applications. This funding can stimulate research and development that are needed to develop future generations of semiconductors.