CHIPS and Science Act

The law

The Law Split $52.7 Billion Five Ways

The CHIPS and Science Act, signed August 9, 2022, appropriated $52.7 billion for chips: $39 billion of manufacturing incentives and $11 billion of research at the Department of Commerce, plus three smaller funds. A separate investment tax credit, Section 48D of the tax code, pays 25% of fab building and tool costs, and the 2025 reconciliation law raised it to 35%. Fiscal 2026 is the last year of CHIPS appropriations for Commerce.

Manufacturing awards

Four Companies Hold About 81% of the Manufacturing Money

TSMC, Intel, Micron and Samsung hold $25.6 billion of the $31.7 billion awarded. The Congressional Research Service lists 19 companies with final awards as of June 2026 and 12 more with preliminary terms but no final award, including Wolfspeed ($750 million proposed), Microchip, Bosch and Analog Devices. GAO counts 49 projects at 24 companies, including nine projects at five companies awarded since July 2025. Where each funded plant stands is at US Reshoring.

Payments

Payments Lag Awards by Years

Awards are paid against construction and production milestones, so money follows concrete. Commerce had paid $13.1 billion by April 2026, 42% of direct funding, and $7.865 billion of that went to Intel, whose award was paid in full when it was converted to equity in August 2025. GAO found every completed milestone on time but nine milestones past their expected dates, and one awardee pushed both of its projects back two years to add a third. The last contracted milestone falls in 2033.

Since 2025

Grants Became Equity After 2025

The program kept its money but changed its terms. Commerce amended awards for 14 companies between January 2025 and April 2026. It took 9.9% of Intel in August 2025, valued at $8.9 billion then and about $44.6 billion in July 2026, and now weighs equity when it sets award amounts: research awards to xLight, SandboxAQ, I-Pulse and GlobalFoundries carry stakes or warrants. Upside-sharing terms were removed from two projects and revised for a third.

Research

Most of the Research Money Was Canceled

Of the $11 billion research appropriation, Commerce canceled about $7.8 billion in awards, including the $7.4 billion National Semiconductor Technology Center (NSTC) award to the nonprofit Natcast in August 2025 and the $285 million Manufacturing USA award to SRC in December 2025. It had spent $506.8 million, about 5%. GAO said the NSTC change cost at least two years of planning and that Commerce lacks a plan to meet the law's research requirements; the program's Industrial Advisory Committee lapsed in November 2025. The National Advanced Packaging Manufacturing Program continues to fund research, including the substrate and packaging work linked from Substrates and Interposers.

Guardrails

Award Terms Still Limit Expansion in China

Award recipients agree not to materially expand advanced chip capacity in China or other countries of concern for 10 years, with limits on new legacy-chip capacity there. Samsung and SK hynix, both with large China fabs, operate under these terms. Changes to US tariffs, export controls and the tax credit are tracked at Sovereignty Constraints, and programs in other countries at Programs and Incentives.

Related coverage

Related Coverage

• US Reshoring
• Sovereignty Constraints
• Programs and Incentives
• Intel Foundry
• TSMC
• Fab Facilities