The United States government’s US$52 billion Chips and Science Act aimed at revitalizing the domestic semiconductor industry is entering a new phase as the US administration transitions.

The Biden administration, which initiated its implementation in 2022, will hand over oversight to Donald Trump’s team on Jan. 20.

The Biden administration allocated US$39 billion in grants, loans, and tax credits, spurring over US$400 billion in private-sector investments.

Although progress includes 20 finalized agreements and 14 preliminary deals, challenges persist, particularly in the face of broader issues affecting the semiconductor industry.

Taiwan Semiconductor Manufacturing Co. (TSMC) has begun production in Phoenix, but advanced manufacturing in the US will follow Taiwan’s initial projects.

Intel faces delays and leadership changes, while Samsung scaled back its Texas investment.