What is the CHIPS Act?

It is a US law that allocated $52.7 billion to support domestic semiconductor manufacturing, including incentives for new fab construction.

When will the new fabs begin production?

New fabs are expected to start production by 2027-2028.

How do equipment company investors benefit from this boom?

Increased fab construction drives demand for manufacturing tools, benefiting companies like Applied Materials, Lam Research, and KLA.

US Chip Manufacturing Revival: What Investors Need to Know

After decades of Asian dominance, major chipmakers are investing heavily in US factories. This shift could reshape supply chains and create new investment opportunities.

July 10, 2026

2 min read

Source: Investor's Business Daily

After years of Taiwan and South Korea dominating semiconductor manufacturing, the United States is experiencing a boom in chip fab construction. According to SEMI, all major manufacturers capable of building state-of-the-art semiconductors are now investing in America. This revival brings back what was once the global standard: chips made in the USA.

Details

Joe Stockunas, president of SEMI Americas, said the current fab construction boom includes companies like Intel (INTC), Samsung, and TSMC. These investments are supported by the CHIPS Act, which allocated $52.7 billion to boost domestic manufacturing. New fabs are expected to begin production by 2027-2028.

Context

The US dominated chip manufacturing in the 1970s and 1980s but lost share to Asia due to lower costs. Today, the US produces only about 12% of global chips, down from 37% in the 1990s. The goal is to raise that to 20% by 2030.

What It Means for Investors

This trend benefits companies like Intel (INTC) investing heavily in domestic manufacturing, as well as equipment makers Applied Materials (AMAT), Lam Research (LRCX), and KLA (KLAC), which will see increased demand for fabrication tools. Risks include higher costs and potential delays.

Frequently Asked Questions

Companies include Intel, Samsung, and TSMC, along with equipment suppliers like Applied Materials, Lam Research, and KLA.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.