There may be some previously "under the rug" issues with the United State's CHIPS Act, a $280 billion subsidy package aiming to strengthen the country's semiconductor manufacturing infrastructure. Namely, the recent gridlock regarding raising the debt ceiling limit has already sparked a reduction in part of the Act's funding allocation, which could spell more challenging times for high-tech funding allocation further down the road.
The CHIPS Act outlines a plan to inject $280 billion in funding to increase domestic semiconductor manufacturing capability in the US. This investment aims chiefly to insulate the United States' supply of chips in case of increased geopolitical tension surrounding Taiwan, home to all-powerful TSMC - whose research and manufacturing expertise make it a prime target for absorption.
