POLICY BRIEF - 22-13 CHIPS Act Will Spur US Production but Not

The influential report from the Boston Consulting Group (BCG) and the Semiconductor Industry Association (SIA), published in 2020, forecast that if the CHIPS Act had provided only $50 billion of subsidies, not the $76 billion enacted, US “manufacturing capacity” would reach 13 to 14 percent of the world total in 2030, rather than the 10 percent projected without new subsidies. [...] To illustrate, for exports to Japan, the average US unit value was $1.16, compared with the average Chinese unit value of $0.17, the average Korean unit value of $0.49, and the average Taiwanese unit value of $0.55. [...] In December 2021 comments to the Office of the United States Trade Representative, SIA called for the elimination of Section 301 tariffs on semiconductors and associated products, claiming that they were contributing to “inflationary price increases driven by the global shortage and rising demand.” In summer 2022, President Biden was weighing a decision to lift some of the Section 301 tariffs to f. [...] The Capital Region is a corridor of the Middle Hudson Valley, running from East Fishkill in the south to Saratoga Springs in the north and encompassing Albany (the state capital), Troy, and Schenectady. [...] Its purpose is to identify and analyze important issues to make globalization beneficial and sustainable for the people of the United States and the world, and then to develop and communicate practical new approaches for dealing with them.