Chips play a vital role in the U.S. economy, including aerospace, auto, communications, defense systems, and others. The U.S. only manufactures 12% of the world's commercial chips. Most chips are produced in southeast Asia.

Still Up for Grabs – CHIPS Act Incentive Funds

The recent 7.2 magnitude earthquake in Taiwan has spotlighted implications as it relates to the global supply chain. Taiwan is home to many chipmakers; Taiwan Semiconductor Manufacturing Co (TSMC) is the world’s largest contract chipmaker, and a major supplier to brands like Apple. In fact, most semiconductor manufacturing is done in southeast Asia. The United States produces only 12 percent of the world’s commercial semiconductors, leading Americans to rely on foreign supply. Chips are an integral part of America’s economy, as they are crucial in industries such as aerospace, automobiles, communications, defense systems, information technology, manufacturing, and medical technology.

CEOs of technology, automotive, and aerospace companies have argued that “the world is not waiting for the U.S. to act. Our global competitors are investing in their industry, their workers, and their economies, and it is imperative that Congress act to enhance U.S. competitiveness.” In response, Congress passed the CHIPS and Science Act of 2022.

The CHIPS Act was passed to revitalize the semiconductor industry in the United States by incentivizing companies to build or expand semiconductor manufacturing plants within the U.S. Ultimately, the Act will award up to $57.2 billion for American research, development, manufacturing, and workforce development. In recent years, a global chip shortage was a household topic, as Americans were unable to purchase certain automobiles for a time. The 2021 Suez Canal obstruction only served to exacerbate America’s offshoring dependence. Producing chips on home soil will decrease America’s reliance on foreign supply. Additionally, increasing research and development within the U.S. will advance America as a leader in semiconductor technology.

Thus far, $16.797 billion in grants have been awarded to five companies across 10 projects in eight states. This includes Taiwan Semiconductor Manufacturing Co, mentioned earlier, for their construction and planned expansion of their third plant in Arizona. While 10 projects have been awarded grants, over $40 billion remain up for grabs.

Maxis Advisors are experts in incentive negotiations. We identify and evaluate all incentive programs, ensuring no opportunity is missed. We are skilled at identifying project costs that can be directly offset by incentives, and most importantly, we are experienced in presenting the project properly to government officials. As a real estate advisory firm, we work closely with manufacturers that are seeking incentives like those offered through the CHIPS Act to build or expand their operations in the U.S. Maxis Advisors will conduct comprehensive site analyses so that our clients may confidently select a location that is strategic for current and future operations.

Connect with us today to discuss your next project, and let Maxis show you how we maximize every opportunity.

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Kelly Moore

We were delighted to collaborate with Maxis Advisors to secure incentives for our new manufacturing location in Winston-Salem. The partnership and dedication of their team have been instrumental in streamlining the process, enabling us to remain focused on operational needs while maximizing our potential and accelerating our growth. We are grateful for their support and look forward to the remarkable opportunities that lie ahead.

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Chief Financial Officer, Tex-Tech Industries

Thanh Nguyen

Maxis Advisors played a critical role in helping us navigate the complexities of selecting a location and securing incentives for our first production facility. From the beginning, they understood our priorities and provided guidance to ensure our final location supported our construction timeline, Department of Energy grant goals, and long-term operational needs. Most importantly, their team’s strong relationships with states and communities matches our organization’s culture and values, and we are grateful to have them as a partner.

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Senior Vice President, 6K Inc.

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