US Chip Manufacturing Incentives Face Uncertain Future Amid Shortage
The CHIPS and Science Act of 2022 allocated $39 billion to incentivize semiconductor manufacturing in the US. The goal was to reduce America's dependence on foreign chip fabrication, which had declined from 37% in 1990 to around 10% by 2022.
However, Trump administration officials criticized the program and suggested discontinuing it, causing concern among industry stakeholders who had invested billions based on promised federal incentives.
Micron CEO Sanjay Mehrotra warned in June 2026 that there is 'no line of sight' for AI memory chip supply to meet demand, with shortages likely extending beyond 2027. The primary driver of demand is artificial intelligence, with hyperscalers like Microsoft, Google, and Amazon hoovering up every available chip.
The shortage has already affected Bitcoin miners, who faced significant delays in receiving new equipment during the 2020-2023 shortage cycle. Premiums on mining hardware spiked, squeezing margins for operators unable to secure rigs at reasonable prices.