CHIP SUPPLY CHAIN

The CHIPS and Science Act has directed $26 billion in confirmed awards to TSMC, Intel, Samsung, and Micron for U.S. fab construction. TSMC Arizona Phase 1 is in volume production at 92 percent yield; Intel Ohio has slipped to 2030; Samsung Taylor targets 2026.

BIS issued its broadest semiconductor export controls in October 2022, blocking China from acquiring advanced AI chips and fabrication equipment. Three years of rule iterations, Entity List expansions, and Trump administration reversals have reshaped global chip trade.

Global foundry capacity splits along a fault line: AI demand has absorbed leading-edge nodes while legacy 28nm-and-above tiers — the substrate for most IoT and automotive chips — recover from a structural shortage that exposed a decade of underinvestment.

The CHIPS and Science Act (Pub.L. 117-167) appropriates $52.7 billion for domestic semiconductor manufacturing and R&D. Commerce has issued over $33 billion in direct manufacturing awards to TSMC, Intel, Samsung, Micron, and others. BIS export controls under 15 C.F.R. Parts 730-774 restrict advanced chip technology transfers to China.