(TNS) – The Chips and Science Act is an innovative and important industrial policy. It makes targeted investments in critical industries to strengthen America’s manufacturing base, protect workers, and strengthen America’s national and economic security. This will help reverse the decades-long trend of job and supply-chain offshoring and contribute to inclusive growth.
The law — signed by President Joe Biden after passing both chambers of Congress with bipartisan support — has two compelling ideas. The first is an understanding that economic competition, especially in advanced manufacturing, often requires systematic government support. Support is needed because “public goods” problems are endemic. The second is the recognition that the United States lacks reliable access to critical semiconductor manufacturing capacity, which creates economic and national security risks.