CHIPS Act

The CHIPS Act is US legislation passed to boost domestic semiconductor manufacturing, offering subsidies and incentives for companies to build chip production capacity within the United States. It was motivated by concerns over supply chain reliance on chip manufacturing concentrated in a small number of other countries.

For investors, the CHIPS Act is a relevant tailwind specifically for companies involved in semiconductor manufacturing and related infrastructure in the US, since it can lower the cost of building new domestic capacity and shift where future manufacturing investment happens.