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Congress enacted the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 (CHIPS Act)1 out of concern about the United States’ declining share of global production of semiconductor chips. The act’s purpose was to bolster domestic production of these complex electronic devices that are crucial to everything from personal computers and household appliances to defense systems.
By Adam Wallwork, J.D., LL.M.; Quynh Nguyen, E.A.; Gary Hecimovich, CPA; Jeremy DeMuth, J.D.; Matthew Normington, CPA; and Andrew Black, E.A. EXECUTIVE SUMMARY National concerns about lagging U.S. production of semiconductors as a share of global production led to legislation in 2021 and 2022, providing funding incentives and a new advanced manufacturing investment tax credit. The credit, under Sec.
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