National News
The president may proclaim how much he hates the CHIPS Act, but last week his administration officially announced a new CHIPS Act award to Micron. It’s the first action under the CHIPS and Science Act since he took office. See below under Corporate News. Around the country, however, many companies are still waiting for their CHIPS Act money.
The Senate wants to give more public money to chip-makers. The Senate version of the Reconciliation bill expands the 48D Investment Tax Credit from 25% to 30%, which would add billions more to the deficit, money from your pocket straight into the bank accounts of some of the world’s largest corporations. (The provision may not become law, because the bill has to be reconciled with the House’s version, AKA the Big Beautiful Bill Act, which does not include the 48D expansion.)
The expansion follows a steady stream of calls from corporate America to extend and expand the tax credit. The investment tax credit for semiconductor manufacturers, a little known part of the CHIPS and Science Act, was already a windfall for corporations. It’s fully refundable, meaning even if a company uses accounting shenanigans to avoid paying any federal taxes, it would still receive a bundle of cash from the IRS equivalent to 25% (or 30%, if the changes go through) of what it spent on chip manufacturing equipment and facilities. Given that more than $500 billion in private investment in semiconductors has been promised since passage of the CHIPS Act, we’re talking a massive giveaway. There’s also a bipartisan bill in the House that would increase this bonanza to 35% and extend its deadline from the end of 2026 to the end of 2030.
Sandia National Labs will join the National Semiconductor Technology Center (NSTC). The NSTC was established under the CHIPS and Science Act to accelerate innovation and address technology challenges. Biden’s Commerce Department awarded $6.3 billion to this public-private partnership, and as far as we know, the money has not been frozen. Sandia, which will be the first laboratory to join the NSTC, is also a public-private endeavor: owned by the federal government but managed and operated by Sandia, which is a subsidiary of Honeywell. “We have pioneered the way for other labs to join,” said Mary Monson, Sandia’s senior manager of blah blah. “The CHIPS Act has brought the band back together, you could say. By including the national labs, U.S. companies, and academia, it’s really a force multiplier.”
News from Around the Country
A misleading article warns that local opposition is slowing the construction of CHIPS Act-funded factories, with delays costing $5 million a day. The article highlights three places where neighbors are worried about massive new chip fabs: Peoria, Arizona; Clay, New York; and West Lafayette, Indiana. The article is right to highlight public opposition but wrong to claim neighbors’ concerns have delayed construction: there’s no evidence community engagement has slowed any of those projects. Nonetheless, this is one of the first articles we’ve seen that notes the rise in concern around new semiconductor factories. There will be more.
Arizona: Speaking of community concerns, our local partners are asking the City of Chandler to protect the water supply. Intel uses the toxic forever chemicals PFAS throughout its production process and (as far as we know) dumps PFAS in its waste water. Because municipal sewage facilities lack the capacity to address PFAS, these poisons end up in our drinking water, rivers, streams, and food. Arizona Jobs with Justice, IUPAT DC 36, the Grand Canyon chapter of the Sierra Club, and other partners are inviting Chandler residents to sign this petition asking the city to require Intel to clean up its waste stream. (We also have an organizational sign-on letter. LMK if your organization can sign on.)
TSMC has begun construction of its third fab in Phoenix (out of a total of six currently planned).
And coming to Phoenix in October – SEMICON West, a massive semiconductor trade show and corporate party, the first time the convening has happened outside Silicon Valley. Question for CCU partners and friends: how can we use this event to tell our story about the semiconductor industry?
New York: Micron’s draft environmental impact statement will be released next week, after multiple delays. There will be 45 days for the public to comment on the statement, one of the few opportunities we will have to scrutinize the impact of chip production on public health, natural resources, and the local community. CCU will let you know how and when you can comment, too.
Ohio: Policy Matters Ohio (a CCU coalition member) is helping organize a town hall meeting in Licking County in August, so residents can discuss their hopes and concerns about the massive Intel plant currently under construction. If you’re interested in this (or anything else related to semiconductors in the great state of Ohio), reach out to Bailey Sandin at bsandin@policymattersohio.org.
Corporate News
Intel: The layoffs have begun. Again. Apparently Intel is about to shed 15 to 20 percent of its foundry staff. Last year the company laid off 16,000 workers, including about 3,000 in Oregon. This round of pink slips will likely hit 8,000 to 11,000 workers worldwide. “When the 2025 layoffs were announced this spring, the company emphasized that its intention was to reduce the number of management layers and bureaucracy within the company. However, the new report indicates that affected roles may span a range of positions, from technicians working directly on factory floors or under them to tool operators and support personnel.” In case anyone forgot, Intel received the largest CHIPS Act award, almost $8 billion plus another $3 billion to make chips for the military, with the claim that they would create thousands of US jobs.
Micron: Micron, which makes memory chips, has increased its planned US investment to $200 billion. The Trump administration made a lot of fanfare about this, although analysts point out that much of that investment was previously planned. $127 billion was already slated for building facilities in New York and Idaho and $50 billion for R&D. The recent announcement boosts the company’s previously stated commitments by about $30 billion, which will be used in part to add a second fab in Boise.
The news makes Micron the third company (after TSMC and GlobalFoundries) to announce it would increase investment in the US since the inauguration of the new president. Some have called it protection money.
One interesting angle is that the Commerce Department put out a press release to announce the expanded investment, the first CHIPS Act announcement of any sort to come from the current administration, and at the same time finalized a $275 million CHIPS Act award to Micron for its Manassas, Virginia facility. (The Idaho and New York facilities were previously awarded $6.165 billion in CHIPS Act direct funding.) The federal government webpage describing the award has been revised; among other things, it no longer links to the community impact report that previously described Micron’s commitments, which included promises to create child care, protect the environment, and invest in workforce development. (CCU archived copies of all the old documents, so let us know if you need to access them.)
Alongside its expansion in Boise, Micron also announced its intention to spend $75 million to boost Boise’s workforce and meet other community needs.
Micron says it expects all its investments will be eligible for the Advanced Manufacturing Tax Credit, which means this project could cost US taxpayers an additional $50 billion, on top of $6.4 billion in direct grants.
Texas Instruments: And now Texas Instruments is raising its ante, too. The company says it will invest $60 billion in the US and build two more fabs in Sherman, Texas.
TSMC: How geopolitical tensions are reshaping TSMC. One factor in the company’s success: TSMC makes all of the logic chips used in AI data centers.
Wolfspeed: North Carolina-based Wolfspeed is in trouble. The company announced a few weeks ago that it planned to file for Chapter 11 bankruptcy. Last year, Wolfspeed was awarded $750 million in CHIPS Act funding and promised to create 1,800 jobs, but none of the money has come through yet, and Wolfspeed is deep in debt. The firm laid off workers in Durham in the fall and is now laying off more employees at its Siler City facility, for a total of about 25% of its workforce. Wolfspeed produces chips that are used in the automotive sector: the decline in EV demand has added to its woes.
Environmental News
Chemical company Chemours is pushing to expand production of PFAS (toxic forever chemicals) to meet the demand from the boom in semiconductor manufacturing. “We think it’s a terrible idea,” said Kelly Moser, senior attorney at Southern Environmental Law Center.
Yet another article about how AI, data centers, and of course chip production will drive electricity demands. Ironically the article was written with the use of AI.
Labor and Workforce News
We need women in the semiconductor workforce! Today, 51% of semiconductor companies have fewer than 20% of their technical roles filled by women.
Samsung workers in South Korea work long hours, shoulder heavy workloads, and endure a brutal work culture. The corporation, South Korea’s most valuable company, is struggling to compete with TSMC. Are engineers leaving because the company is failing, or is it the other way around?
Global Politics
Taiwan’s growing dominance in semiconductors is reshaping the global landscape. “As Taiwan’s strategic importance grows, so too does debate over how this reliance affects the risk of conflict between China and Taiwan. Questions about whether the international community would tolerate a Chinese takeover of Taiwan’s chipmaking capabilities, and what would happen if Taiwan’s fabrication plants were destroyed, have become central to discussions on global security and economic resilience.” A full-scale war in Taiwan could lead to a $10 trillion loss for the global economy, and a blockade might cost $2.7 trillion. By contrast, the war in Ukraine had a $250 billion impact on the world economy.
That’s all for today. See you next week!
