Semiconductor Programs & Incentives

Semiconductors are now recognized as a national security priority and a foundation layer for the AI era. Governments worldwide are deploying unprecedented incentive programs to reshore semiconductor manufacturing, secure supply chains, and compete in what some have called the “AI Manhattan Project Arms Race.” This page highlights key initiatives, from the U.S. CHIPS Act to the EU, Japan, Korea, and China, as well as state-level programs supporting domestic fabs.

Global & National Programs

• U.S. CHIPS & Science Act – $52B federal subsidies to support domestic fabs, packaging, and R&D centers.
• U.S. Inflation Reduction Act (IRA) – Incentives for clean energy, EVs, and power electronics that rely on semiconductors.
• EU Chips Act – €43B to strengthen European semiconductor sovereignty.
• Japan Semiconductor Subsidies – State support for TSMC Kumamoto fab and Rapidus (2nm R&D initiative).
• Korea K-Semiconductor Strategy – Infrastructure and tax incentives to maintain Samsung/Hynix leadership.
• China National IC Fund (“Big Fund”) – Over $100B committed to domestic fabs and equipment self-sufficiency.

State & Local U.S. Initiatives

• Texas – Incentives supporting Samsung’s Taylor fab, Tesla’s Dojo supercomputer, and a growing semiconductor corridor.
• Arizona – State and federal support for TSMC fabs and Intel expansions in Phoenix metro area.
• New York – Up to $5.5B in incentives for Micron’s planned mega-fab in Clay, NY.
• Ohio – State subsidies for Intel’s “Silicon Heartland” fabs in Licking County.

Strategic Imperative

• Semiconductors are the **foundation of the AI stack** — chips, fabs, and compute clusters are critical national assets.
• The “AI Manhattan Project” framing highlights how AI datacenters and fabs mirror Cold War nuclear buildouts — massive, state-funded, strategic races.
• Control of lithography, AI GPUs, and advanced fabs is now a **geopolitical contest** shaping alliances and supply chains.
• Programs like the CHIPS Act are not just about jobs or economics, but about **technological sovereignty** and military readiness.

Market & Policy Outlook

FAQs

• What is the U.S. CHIPS Act? – A $52B program providing subsidies, grants, and tax credits for domestic semiconductor manufacturing and R&D.
• Why are semiconductors a national security concern? – Advanced chips power AI, defense systems, critical infrastructure, and economic competitiveness. Dependence on foreign fabs creates vulnerability.
• Which regions are leading incentive programs? – The U.S., EU, Japan, Korea, and China all have multibillion-dollar programs to support fabs and supply chains.
• How does this tie to AI? – AI datacenters require enormous volumes of advanced GPUs and accelerators, making semiconductor capacity the foundation of the “AI arms race.”
• What role do states play? – U.S. states such as Texas, Arizona, and New York are offering additional subsidies, creating regional semiconductor hubs.