CHIPS Act
A 2022 US law that funds domestic semiconductor manufacturing to reduce reliance on foreign, mostly Asian, chip production.
Definition
The CHIPS Act (formally the CHIPS and Science Act, passed in the United States in 2022) is a law that provides tens of billions of dollars in subsidies and incentives to build semiconductor factories on American soil. Its goal is to reduce US dependence on chips made overseas — especially in Taiwan and South Korea — which are essential to everything from phones to the GPUs that power AI. It reflects the wider push for compute sovereignty: a country deciding that the ability to make its own advanced chips is too strategically important to leave to other nations. Several other regions have since launched similar chip-subsidy programs.