CHIPS Act Overview
The CHIPS and Science Act, signed August 2022, allocated $52.7 billion total: $39 billion for commercial semiconductor fabrication facility construction incentives, $13 billion for research and R&D. The Department of Commerce CHIPS Program Office administers grants and loans through the “CHIPS Incentives Program for Commercial Fabrication Facilities.”
Award Status as of April 2026:
- Multiple binding awards issued to Intel, TSMC, Samsung, Micron, GlobalFoundries, Wolfspeed, Texas Instruments, and Skywater.
- Preliminary Memoranda of Terms (PMT) phase occurred in 2024; binding agreements signed through early 2026.
- Disbursements have begun for projects entering construction phase.
US Fab Construction Tracker
| Project | Operator | Location | Node Tier | Capacity (wpm) | Investment | CHIPS Act Award | Target Production | Status |
|---|---|---|---|---|---|---|---|---|
| TSMC Arizona Fab 21 Phase 1 | TSMC Arizona LLC | Phoenix, AZ (Maricopa County) | Leading-edge (4nm) | 90k–100k | $12B+ | $6.6B grant + $5B loan (binding) | Q4 2025 ✓ | In volume production; yield on par with Taiwan |
| TSMC Arizona Fab 21 Phase 2 | TSMC Arizona LLC | Phoenix, AZ | Advanced-node (3nm) | 50k–60k | $8B+ | Covered under Phase 1 award | H2 2027 | Equipment installation Q3 2026 |
| TSMC Arizona Fab 21 Phase 3 | TSMC Arizona LLC | Phoenix, AZ | Advanced-node (2nm, A16) | TBD | $5B+ | Pending | 2029+ | Groundbreaking completed Q1 2026 |
| Intel Arizona Fab 52 | Intel Corporation | Chandler, AZ (Maricopa County) | Advanced-node (18A) | 60k–80k | $20B (Phases 1–2) | $7.86B grant + loans (binding) | 2025 ✓ | In production; 18A yield ramp through 2027 |
| Intel Arizona Fab 62 | Intel Corporation | Chandler, AZ | Advanced-node (18A+) | 60k–80k | $20B (Phases 1–2) | Covered under Fab 52 award | 2028 | Early construction phase |
| Intel Ohio Mod 1 (Fab 52/62 equivalent) | Intel Ohio One LLC | New Albany, OH (Licking County) | Advanced-node (18A) | 60k–80k | Up to $100B (8 fabs planned) | $8.5B grant + $11B loans (binding) | 2030–2031 | Construction ongoing; delayed from 2025 |
| Intel Ohio Mod 2 | Intel Ohio One LLC | New Albany, OH | Advanced-node (18A+) | 60k–80k | Part of $100B plan | Covered under Mod 1 award | 2031–2032 | Early site preparation |
| Samsung Taylor S5 Fab | Samsung Austin Semiconductor LLC | Taylor, TX (Williamson County) | Advanced-node (4nm, 2nm GAA) | 50k–100k | $37B announced | $4.7B grant (binding, reduced from $6.4B PMT) | Late 2026 (revised) | 90%+ construction; equipment delays reported |
| Micron Clay NY Fab 1 | Micron Technology Inc. | Clay, NY (Onondaga County, Syracuse region) | Mature-node / DRAM (1-beta, 1-gamma) | 40k–60k | $100B (4 fabs over 20 years) | $3.4B grant (reallocated from $4.6B; $1.2B moved to Idaho) | 2030 | Ground prep begins late 2026; construction 2027–2029 |
| Micron Boise ID Expansion | Micron Technology Inc. | Boise, ID | Mature-node / DRAM | TBD | Part of $100B plan | $2.75B grant (increased from reallocation) | 2028+ | Acceleration approved; construction underway |
| GlobalFoundries Malta NY Fab | GlobalFoundries Inc. | Malta, NY (Saratoga County) | Mature-node (12–22nm) | 30k–40k | $11.6B planned | $1.587B + $1.5B awards (binding) | 2025–2026 | New facility construction starts 2025 |
| GlobalFoundries Advanced Packaging Center | GlobalFoundries Inc. | Malta, NY | Advanced packaging, photonics | TBD | $575M | Part of Malta award | 2026+ | Planning phase |
| Texas Instruments Sherman SM1 | Texas Instruments Inc. | Sherman, TX (Grayson County) | Mature-node (analog, embedded) | TBD | $30B (4 fab expansion) | $1.6B grant (binding) | 2025 ✓ | Production started 2025 |
| Texas Instruments Sherman SM2 | Texas Instruments Inc. | Sherman, TX | Mature-node (analog, embedded) | TBD | Part of $30B plan | Covered under SM1 award | 2026–2027 | Construction ongoing |
| Wolfspeed Marcy NY | Wolfspeed (Cree) | Marcy, NY (Oneida County, Mohawk Valley) | Specialty (SiC – silicon carbide) | 25k–30k (substrate-dependent) | $1.2B + $1B public investment | CHIPS preliminary terms (~$100M–200M proposed) | 2022 ✓ | Operational; expansion planned 30% capacity increase |
| Skywater Bloomington MN | Skywater Technology Inc. | Bloomington, MN | Mature-node (mixed-signal, DoD) | TBD | $127M customer-funded CapEx | $316M proposed CHIPS award | 2026 | Customer co-investments ongoing; DoD Trusted Foundry |
Key Strategic Insights
US Domestic Fab Independence
As of April 2026, the US is transitioning from dependency on Taiwan (TSMC) and South Korea (Samsung) for leading-edge logic chips:
- TSMC Arizona Fab 21 Phase 1 (4nm) is now in volume production, producing Apple’s chips. This is the first time a leading-edge sub-5nm fab has reached production in the US.
- Intel Arizona Fab 52 (18A, ~2nm-class) entered production in 2025 and is ramping yield. If Intel 18A achieves world-class yields in early 2027 as projected, Intel will have an additional leading-edge source.
- Intel Ohio delays (now targeting 2030–2031 instead of 2025–2026) pose a risk: if Intel Ohio slips further or if 18A yields remain challenged, the US will have only TSMC Arizona as a sub-5nm source for several years.
Geographic Concentration
- Arizona dominates US advanced-node capacity (TSMC + Intel).
- Ohio will add leading-edge capacity but faces supply chain and workforce challenges.
- Texas is emerging as a high-volume analog/embedded producer (TI) and potential advanced-node source (Samsung, if delays resolve).
- New York is repositioning as DRAM (Micron) and mature-node (GlobalFoundries) center.
CHIPS Act Realities
- PMT ≠ Binding Award: Multiple companies received PMTs in 2024 that were subsequently reduced or restructured (e.g., Samsung $6.4B PMT → $4.7B binding; Micron reallocated $1.2B from NY to ID).
- Disbursement Timing: Grants are typically disbursed in tranches tied to construction milestones. Binding award ≠ immediate cash.
- Conditions: Awards include domestic worker requirements, apprenticeship targets, and onshoring commitments.
Risk Factors
- Intel’s Financial Health: 2024 layoffs and profitability challenges may impact Ohio timeline and capacity; Intel has explored foundry divestiture.
- Samsung Delays: Taylor fab delays stem from lack of advanced-node customers; if this persists, the fab may pivot to mature-node or packaging.
- Micron Workforce: NY expansion depends on local labor availability; Boise acceleration reflects labor availability there.
- Macro Conditions: Recession, trade policy changes, or export control expansion could alter CHIPS disbursements and project timelines.