New Report: A California Strategy for Competing for CHIPS Act Funding
California has the opportunity to capture a significant share of funding from the 2022 Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 (CHIPS+Science Act), but competition will be intense and other states (Texas, New York, Arizona, Oregon and Ohio among others) are already shaping their own initiatives.
The CHIPS Act aims to increase semiconductor manufacturing in the U.S. through a five-year federal investment of $52 billion. With U.S.-China tensions and the potential vulnerability of production in Taiwan, and broader issues of supply chain reliability, the Act invests in scientific research, workforce development, regional technology and innovation hubs, and provides significant incentives for manufacturing including fabs, packaging, and the semiconductor supply chain.
Succeeding at securing funding at a level that meets the state’s potential will require a strategy, a proactive outreach, and a well-organized partnership between the state, local governments, the business and economic development community, universities (including the University of California, CSU, and community colleges), and workforce development agencies.
A recent report prepared by the Bay Area Council Economic Institute for the New California Coalition – Seizing the Semiconductor Opportunity: How California Can Increase Its Competitiveness and Capture CHIPS Act Funding – provides a roadmap for California policymakers and business leaders on how to compete for CHIPS Act funding. For more information, please contact Economic Institute Senior Director Sean Randolph.