The CHIPS Act, or the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022, is a law signed on August 9, 2022, aimed at boosting US competitiveness, innovation, and national security. The act combines two bipartisan bills: the Endless Frontier Act, designed to boost investment in domestic high-tech research, and the CHIPS for America Act, designed to bring semiconductor manufacturing back to the US. The CHIPS Act directs $280 billion in spending over the next ten years, with $200 billion for scientific R&D and commercialization, $52.7 billion for semiconductor manufacturing, R&D, and workforce development, and $24 billion worth of tax credits for chip production. The act also aims to create new regional high-tech hubs and a bigger, more inclusive science, technology, engineering, and math (STEM) workforce.

The CHIPS Act prohibits funding recipients from expanding semiconductor manufacturing in China and countries defined by US law as posing a national security threat to the United States. The act also includes safeguards to ensure that recipients of Federal funds from these programs cannot build advanced semiconductor production facilities in countries that present a national security concern. The CHIPS Act provides appropriations needed to implement the USA Telecom Act that was enacted in the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021.

In summary, the CHIPS Act is a law aimed at boosting US competitiveness, innovation, and national security by investing in domestic semiconductor manufacturing capacity, R&D, and commercialization, creating new regional high-tech hubs, and a bigger, more inclusive STEM workforce. The act also includes safeguards to ensure that recipients of Federal funds from these programs cannot build advanced semiconductor production facilities in countries that present a national security concern.