To date, the CHIPS Act has allocated more than $32 billion in proposed funding across 18 companies, 16 states, and 26 projects. However, no CHIPS funding has yet been disbursed to any companies, according to the US Department of Commerce.
TSMC is the main supplier of chips for both Nvidia and Apple. The CHIPS Act allocated $6.6 billion in grants and $5 billion in loans, along with a 25% tax credit, to incentivize the company to build three fabs in Arizona. TSMC’s first facility was scheduled to open this year, but the company pushed that back to next year after labor shortages surfaced.
The US reshoring efforts come at a time when the industry doesn’t have anywhere near the workforce — including technicians, computer scientists, and engineers — required to support future needs. By some estimates, the US semiconductor industry will face a worker shortfall of between 59,000 and 146,000 workers by 2029. A minimum of 50,000 trained semiconductor engineers will be needed over the next several years in the US to meet the overwhelming and rapidly growing demand, according to a study by Purdue University.