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Communications of the ACM

ACM Opinion

The CHIPS Act Will Not Solve the Chip Shortage

President Joseph Biden holds a microchip between two fingers.

On its face, the idea of increasing semiconductor manufacturing in the U.S. seems like it would help address the global supply crunch for computer chips.

Credit: Doug Mills/Getty Images

The CHIPS Act will subsidize U.S. semiconductor manufacturing and research with billions in funding, but it may not do much for the ongoing chip shortage, at least in the short term. While it is certainly fair to call the legislation a victory for bipartisanship, this plan is primarily focused on keeping up with China's growing investment in its own domestic chip industry, not solving the present issues with the tech supply chain.

The chip factories produced by this package will not be complete for years, and the bulk of the funding will not necessarily go toward basic chips, which account for much of the ongoing shortage.

From Vox
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