CHIPS Act Spurs Massive Semiconductor Industry Site Selection Project Announcements

by King White, on Jun 6, 2024 8:15:00 AM

The U.S. was a global leader in semiconductors a few decades ago, producing an estimated 40% of the world’s supply. The U.S.’s market share has declined to only 10% as global demand increased to power smartphones, mobile devices and the latest AI technology. To strengthen the U.S. semiconductor supply chain, Congress passed the bipartisan CHIPS Act in 2022. Since then it has catalyzed an unprecedented wave of site selection projects across the United States, positioning the U.S. at the forefront of global semiconductor innovation and manufacturing. 

With over $350 billion in private investments announced so far, the economic development impact on job creation and capital investment is profound.

The CHIPS Act: A catalyst for economic and technological revival

The CHIPS Program Office (CPO) has recently unveiled the first recipients of its grant program—allocating $23.197 billion in grants and up to $17.6 billion in loans across 14 projects in nine states. This strategic infusion of federal funds is set to bolster the U.S. semiconductor ecosystem significantly. Companies like Samsung, TSMC and Intel are leading the charge, each embarking on ambitious projects that promise to transform local economies and reinforce the nation’s technological prowess. The following map identifies the location of these projects by project type:

CHIPS-Resource Image


A deep dive into site selection and economic impact

The economic impact of these projects is massive due to job creation, job types, payroll, utility demands, capital investment and the additional investment made by their suppliers clustering around the sites. The following provides a detailed summary of these projects:

Project Size
Project Type
Tech Type
Date Announced
BAE Systems Nashua, NH $35M Not Avail Semiconductors  Modernization  Mature-Node Dec. 11 
GlobalFoundries Malta, NY $1.375B in grants
$1.6B in loans
$11,600,000,000 Semiconductors  New Fab, Expansion Current-Gen, Mature-Node Feb. 19 
GlobalFoundries Essex Junction, VT $125M $900,000,000 Semiconductors  Revitalization  Mature-Node Feb. 19 
Intel Hillsboro, OR $8.5B grants
$11B loans (Intel projects)
$36,000,000,000 R&D  Modernization, Expansion Leading-Edge Mar. 20
Intel Chandler, AZ $8.5B grants
$11B loans (Intel projects)
$32,000,000,000 Semiconductors  2 New Fabs, Expansion Leading-Edge Mar. 20
Intel Rio Rancho, NM $8.5B grants
$11B loans (Intel projects)
$4,000,000,000 Packaging  2 Modernizations Advanced Packaging Mar. 20
Intel New Albany, OH $8.5B grants
$11B loans (Intel projects)
$28,000,000,000 Semiconductors  2 New Fabs Leading-Edge Mar. 20
Microchip Tech Colorado Springs $90M Not Avail Semiconductors  Modernization, Expansion  Mature-Node Jan. 4 
Microchip Tech Gresham, OR $72M Not Avail Semiconductors  Modernization  Mature-Node Jan. 4 
Samsung Taylor, TX $6.4B grants (all projects) $4B (all projects) Semiconductors 2 New Fabs Leading-Edge Apr. 15
Samsung Taylor, TX $6.4B grants (all projects) $45B (all projects) R&D New Fab Leading-Edge Apr. 15
Samsung Taylor, TX $6.4B grants (all projects) $45B (all projects) Packaging New Facility Advanced Packaging Apr. 15
Samsung Austin, TX $6.4B grants (all projects) $45B (all projects) Semiconductors Expansion Mature-Node Apr. 15
TSMC Phoenix, AZ $6.6B grants
$5B loans
$45B (all projects) R&D New Fab Leading-Edge Apr. 15

Samsung’s expansion in Texas

Samsung is set to receive $6.4 billion in grants for a monumental $45 billion investment that includes constructing two new fabs and an advanced packaging facility in Taylor, Texas, an Austin suburb. This project is a cornerstone of Samsung’s strategy to develop a comprehensive manufacturing ecosystem with 4nm and 2nm process technology production capabilities. The direct impact: Creation of thousands of jobs and a significant uptick in local and national economic activity.

TSMC’s strategic investment in Arizona

TSMC is enhancing its U.S. presence with a $65 billion investment supported by $6.6 billion in grants and $5 billion in loans. The company plans to build three new fabs in Phoenix, spearheading the advancement of 2nm and 3nm process technologies. This initiative is not just a boost for TSMC but a game changer for the U.S. economy, promising high-volume, high-tech manufacturing jobs crucial for technological independence.

Intel’s nationwide commitment

Intel’s expansion efforts are equally impressive, with new projects across Chandler, Arizona, New Albany, Ohio and Hillsboro, Oregon, totaling an investment of over $100 billion. These projects, supported by substantial grants and loans, are set to revamp Intel’s manufacturing capabilities through the introduction of advanced technologies like the Intel 18A logic process. The expected job creation from these developments is monumental, highlighting the CHIPS Act’s role in revitalizing America’s industrial landscape.

Strategic implications for site selection activity

The allocation of CHIPS Act funds underscores a pivotal shift in site selection dynamics, emphasizing the strategic importance of technological advancement and economic security. As a site selection consultancy, Site Selection Group is crucial in advising companies on optimizing their real estate portfolios to align with these new federal priorities. Our expertise helps clients navigate the complexities of site selection to capitalize on economic incentives, enhance operational efficiencies and drive significant capital investment.


The CHIPS Act represents more than just financial incentives—it is a cornerstone policy driving the U.S. back to its status as a global leader in high-tech manufacturing. For companies looking to expand or innovate within the semiconductor industry, the act not only offers a financial lifeline but also a chance to be at the forefront of the technological revolution. At Site Selection Group, we are excited to partner with firms looking to leverage this historic opportunity to enhance their competitive edge through strategic site selection.

For ongoing updates on how the CHIPS Act can benefit your business, or to consult on your site selection strategy, contact us at Site Selection Group. 




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