(TNS) – The CHIPS and Science Act is an innovative and important industrial policy. It makes targeted investments in critical industries to strengthen America’s manufacturing base, protect workers, and strengthen US national and economic security. It will help reverse decades of offshore labor and supply chain trends and contribute to inclusive growth.
The law — signed by President Joe Biden after passing both houses of Congress with bipartisan support — has two motivating ideas. The first is the realization that economic competitiveness, especially in advanced manufacturing, often requires systematic government support. Support is required because “public goods” problems are endemic. The second is the recognition that the United States lacks reliable access to critical semiconductor manufacturing capacity, which creates economic and national security risks.