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Will America's investment in semiconductor chips pay off?

U.S. President Joe Biden holds a semiconductor during his remarks before signing an Executive Order on the economy in the State Dining Room of the White House in Washington, DC.
U.S. President Joe Biden holds a semiconductor during his remarks before signing an Executive Order on the economy in the State Dining Room of the White House in Washington, DC.

President Joe Biden is making his way to Pheonix, Arizona, where a new semiconductor chip plant is being built.

These chips are found in popular electronics like smartphones and gaming consoles and also in cars and military weapons. During the pandemic, disruption to global supply chains created an alarming shortage of them in the U.S. 

To reduce reliance on China’s manufacturing, the Biden Administration passed the CHIPS Act. It allocates $52 billion dollars to build up America’s semiconductor industry.

These tiny chips are expected to make a huge economic impact – one with geopolitical implications. How will that money be spent? And with all the layoffs in the tech industry, will the investment actually be worth it?

Copyright 2022 WAMU 88.5

Michelle Harven