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Worried that most advanced chips are made overseas, the United States passed a major law in 2022 backed by tens of billions of dollars in subsidies.
The CHIPS and Science Act's main goal is bringing advanced chip manufacturing back onto US soil, using tens of billions of dollars in subsidies to reduce the country's heavy reliance on chip factories located overseas and to strengthen a supply chain that had become a strategic vulnerability.
The law does not ban imports of foreign-made chips, that would cut off the very supply the US still depends on today; nor does it set any global price for memory chips, pricing remains determined by the market, not government mandate.
The roughly 50 billion dollars in incentives succeeded in drawing new fab investments from major players including TSMC, Intel, and Samsung to build plants in the United States, though building and staffing a leading-edge chip factory still takes years even with funding secured.
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