Rebuilding America's Semiconductor Industry: How State Governments Can Drive Domestic Capacity and Maximize the CHIPS Act

COVID19 demonstrated the immense risks of an overly-concentrated semiconductor supply chain, and resulted in the bipartisan CHIPS act to re-shore the semiconductor industry. To achieve this goal, it’s not enough for the Federal government to act alone. State governments are critical in working directly with industry to clear the way for domestic fabs that cost billions in upfront investment and operate on multi-decade time horizons. Based on extensive interviews amongst industry sources and policymakers, the report analyzed the “core four” factors private industry says it needs from states to make semiconductor onshoring financially sustainable. These factors are (1) an educated workforce trained across a number of fields and levels of proficiency (2) regulatory clarity (3) subsidies/ financial incentives and (4) geographic clustering. The report concluded with deep dive case studies in six critical states taking the lead in onshoring the semiconductor industry: Arizona, California, Ohio, New York, South Carolina, Texas. The report analyzed what each state is doing well and where it can improve