The government is racing to complete CHIPS Act agreements before the end of President Biden’s term.

Due to potential delays and the uncertain future of negotiations, the Biden administration is under pressure to expedite the grant process before its exit from the White House in January. The Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act was designed to drive domestic chip manufacturing and innovation, reducing reliance on imported chips. However, delays in funding distribution have raised concerns.

Economic, Political and Industry Impact

Several key players, including Intel, Polar and Texas Instruments, are expected to benefit significantly from the Act and help bolster domestic semiconductor production. Companies from both the U.S. and abroad have been awarded funding to manufacture domestically, but many big industry players are still waiting for billions in grants.

The delay is partly due to the high volume of applications for the grant, leaving many projects unable to begin until money has been received. As of November 4, only one company had received their promised funds. The hope is that now businesses have begun getting their grants, the rest won’t be far behind.

What is the CHIPS and Science Act?

The CHIPS and Science Act is a $52.7 billion initiative aimed at strengthening the U.S. semiconductor industry and boosting manufacturing.

The government initiative is hoped to deliver significant benefits for the U.S. economy and electronics sector by creating high-skilled jobs, boosting local economies, and fostering technological advancements in AI, 5G, and IoT. Creating a reliable, domestic semiconductor supply chain also reduces risks for industries like defense and healthcare.

In addition, the act funds workforce training and has established the National Semiconductor Technology Center (NSTC) to encourage discovery and progress. By supporting critical sectors—from automotive to defense—it is set to secure a stable chip supply, create thousands of jobs, and enhance the U.S. semiconductor industry’s competitiveness on the global stage.

With political uncertainty and potential tariff increases on the horizon, Lantek can help secure your components now and safeguard your supply. Contact Lantek Corporation today to discuss our scheduled ordering services and how we secure your electronic component requirements, lock in pricing, and safeguard your operations against disruptions.

Don’t let uncertainty affect your supply chain, assure the future of your business now with Lantek.

‍