After the global semiconductor shortage of 2021 and 2022 highlighted the vulnerability of industrial supply chains, multinational companies began scrambling to secure much-needed chip supply. Policymakers around the world have been vying ever since to attract more semiconductor investments to in an effort to de-risk high-value supply chains.
In response, the United States passed the CHIPS and Science Act in 2022, which allocates more than $52.7 billion to incentivize domestic semiconductor investment, manufacturing, and research and development. The European Union’s equivalent is in the final legislative stages and will soon be signed into law, mobilizing €43 billion in public and private investment with the objective of doubling the EU’s global market share in semiconductors, from 10% now to at least 20% by 2030.