CHIPS Act Created 30,000-45,000 Jobs in 149 Counties, Brookings Paper Finds
Updated
Updated · Brookings Institution · Jun 19
CHIPS Act Created 30,000-45,000 Jobs in 149 Counties, Brookings Paper Finds
1 articles · Updated · Brookings Institution · Jun 19
Summary
$52.7 billion in CHIPS Act funding directly and indirectly created 30,000 to 45,000 jobs and lifted wages in 149 U.S. counties with semiconductor manufacturing facilities, according to a Brookings paper.
The study compared employment and wage trends through end-2024 in semiconductor counties against similar high-tech counties without chip producers, aiming to isolate the law's effect from other spending programs.
Direct gains totaled 15,000 to 16,000 jobs in chip production and related equipment and materials, while indirect gains added 15,000 to 30,000 jobs in upstream suppliers and non-residential construction.
Employment and wages began rising about a year before the August 2022 law, after the Senate passed precursor legislation in June 2021, suggesting expectations of subsidies moved labor markets early.
The authors said the job gains may look modest relative to the spending, but argued that is consistent with semiconductor manufacturing's capital intensity and that supply-chain resilience and long-term productivity matter more than short-run hiring.
Is the CHIPS Act spurring breakthroughs in quantum computing and other vital frontier technologies?
Can the CHIPS Act secure supply chains when critical raw materials remain concentrated abroad?
With fabs costing billions, can the US overcome its skilled worker shortage to actually operate them?
The CHIPS and Science Act: Measuring Economic Impact, Job Growth, and Sustainability in U.S. Semiconductor Manufacturing (2022–2026)
Overview
Enacted in August 2022, the CHIPS and Science Act launched a major federal effort to boost U.S. semiconductor manufacturing, drive research, and reclaim technological leadership. By allocating tens of billions of dollars for manufacturing incentives and research, along with a temporary 25% investment credit, the Act sparked a surge in private investment and manufacturing construction. This financial push attracted major technology companies, such as Micron Technology, to commit to large-scale projects. The Act’s strategy not only strengthens domestic production but also fosters innovation ecosystems, setting the stage for long-term economic growth and technological advancement across the country.