After months of delay, the CHIPS Act of 2022 (“CHIPS”) finally cleared both houses of Congress last week, as part of larger legislation focused on supporting many aspects of science and innovation.
CHIPS, short for “creating helpful incentives to produce semiconductors,” is intended to provide billions of dollars in financial incentives for companies to develop domestic semiconductor manufacturing capability encompassing infrastructure, workforce, and research and development (“R&D”).
With microchips being a necessary component of many consumer products, such as computers, phones, appliances, cars, etc., as well as critical to military and aerospace applications that overlap with areas of National Security, CHIPS represents a philosophical shift from the laissez-faire approach that limited government involvement in the microchip industry over the last several decades. Ideally, CHIPS will usher in a return to prominence of semiconductor chip manufacturing and R&D in the U.S., creating new jobs and industries for years to come, while weakening what has been perceived as a growing reliance on foreign companies for America’s supply of microchips.
Nowhere is this more evident than with Intel Corporation’s recent decision to build a large-scale, next-generation semiconductor fabrication facility in Central Ohio. CHIPS should further incentivize Intel’s investment in the Midwest, as opposed to overseas, with positive economic consequences likely to be felt throughout the region.
As a leading provider of legal services in Ohio, Calfee, Halter & Griswold LLP looks forward to leveraging its strengths in intellectual property, litigation, corporate, government relations, and other areas to assist our current clients and partner with new clients in response to the opportunities presented by CHIPS.
Calfee Connections blogs, vlogs and other educational content are intended to inform and educate readers about legal developments and are not intended as legal advice for any specific individual or specific situation. Please consult with your attorney regarding any legal questions you may have. With regard to all content including case studies or descriptions, past outcomes do not predict future results. The opinions expressed may not necessarily reflect the view points of all attorneys and professionals of Calfee, Halter & Griswold LLP or its subsidiary. Updates related to all COVID-19 government assistance programs are provided with the most current information made available to Calfee at the time of publication. Clarifications and further guidance are being disseminated from government authorities on an ongoing basis. All information should be reaffirmed prior to the submission of any application and/or program participation.
- Tips for Tech Companies Hoping to Expand in Ohio Under the CHIPS Act
- FTX’s Free Fall Into Bankruptcy – Will Crypto Investors and Crypto Creditors Lose Again?
- Calfee NOW: Cuyahoga County Executive-Elect Chris Ronayne
- Calfee’s Commitment to Business in Ohio
- Senate Passes CHIPS Act, Incentivizing Intel’s Investment in Ohio
- Calfee NOW: Valerie Pope, Executive Director of the Mechanical Contractors Association of Ohio, on Intel
- Calfee NOW: Congressman Troy Balderson on Intel
- Calfee NOW: Ohio Chamber of Commerce President and CEO Steve Stivers on Intel
- Satisfying Policy Retentions or Deductibles With Other People’s Money