Why billions of CHIPS Act dollars have not been distributed: The Department of Commerce said it is still in complex negotiations with chip manufacturers to ensure the federal funding is wisely spent on providing a base for new fabs and research facilities

The US share of global semiconductor production has decreased from 37% to 12% over the past 30 years, while China's share has grown to 18%. In response to the worldwide supply-chain crisis and semiconductor shortages, the CHIPS and Science Act was passed in August 2022, providing $52.7 billion to the US Department of Commerce (DoC) for semiconductor research, development, and manufacturing. However, none of the money has been distributed yet, and some fabrication plant projects have faced obstacles. The DoC is currently in negotiations with chip manufacturers to ensure the funding is used effectively. The impact of the CHIPS Act is expected to take several years to be realized, as semiconductor fabrication plants take time to build and there is a shortage of skilled labor. Despite the challenges, the Act has encouraged major chip manufacturers to announce projects in the US. The DoC is actively engaging with chip makers and expects to make major announcements in the coming months. [Extracted from the article]