01 Nov 2022 -

How does the CHIPS Act impact engineers?

science interconnections

The $52 billion spending plan outlined in the U.S. CHIPS and Science Act — or simply the CHIPS Act — offers significant benefits, but it also has significant implications throughout the semiconductor ecosystem.

Semiconductors, in particular, have a uniquely interconnected infrastructure that has touchpoints across just about every market, writes EETimes. There are significant changes that will impact design and application engineers for years—some of them negative and some positive.

“As part of the CHIPS Act, organizations that receive funding to expand their U.S. operations also face some restrictions on how and where they can expand their businesses in the future. Specifically, companies that take CHIPS funding will face restrictions for expanding into countries that are considered a threat to U.S. national security—which means China. With so much of the global semiconductor supply chain tied into Chinese manufacturing capabilities, that has the potential to significantly change the way design engineers source semiconductors for their products.”

“On the other hand, some industries stand to benefit significantly from this legislation,” continues EETimes. “With increased focus from nearly every major automotive manufacturer on building the next generation of electric vehicles, as well as significant investments in autonomous-vehicle technology, there is no better time than the present for an influx of money—footed by the U.S. government or otherwise—to help support what is certain to be a booming industry over the next 10 years and beyond.”

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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