Big U.S. reshoring push

The U.S. semiconductor buildout has swelled to more than 140 announced projects across 30 states, with private investment topping $640 billion as of January 30, 2026. (semiconductors.org) That total covers fabs, packaging plants, materials suppliers, equipment makers, and research sites announced since 2020, according to the Semiconductor Industry Association. The group says the projects would create or support more than 500,000 U.S. jobs, including 70,000 facility jobs and 122,000 construction jobs. (semiconductors.org) The push rests on two main federal incentives signed into law on August 9, 2022: the CHIPS and Science Act and a 25% Advanced Manufacturing Investment Credit for semiconductor facilities and chip-equipment plants. Congress authorized CHIPS funding in Public Law 117-167, and the Internal Revenue Service says Section 48D covers qualified investment in eligible facilities. (congress.gov) (irs.gov) Semiconductors are the tiny switches that run phones, cars, servers, and weapons systems, and the U.S. has spent years trying to reduce its dependence on Asian manufacturing. When the White House backed the CHIPS law in 2022, it said the U.S. made about 10% of the world’s chips and none of the most advanced ones. (bidenwhitehouse.archives.gov) Industry forecasts show the factory side of that strategy moving fast. A Semiconductor Industry Association and Boston Consulting Group report published May 8, 2024 projected U.S. semiconductor manufacturing capacity would rise 203% from 2022 to 2032, the fastest growth rate in the world, and lift the U.S. share of advanced logic production below 10 nanometers to 28% by 2032 from 0% in 2022. (semiconductors.org) But a chip is not finished when the wafer leaves the fab. Advanced packaging — the step that connects, stacks, and seals chip components so they can work inside a server or phone — remains a weak point in the U.S. supply chain, and the Commerce Department created the National Advanced Packaging Manufacturing Program to build that capacity at home. (nist.gov 1) (nist.gov 2) Commerce announced $1.4 billion in final advanced-packaging awards in January 2025, including $1.1 billion to Natcast for a piloting facility tied to the National Semiconductor Technology Center. Secretary Gina Raimondo said at the time that stronger packaging capability was needed to keep leading-edge manufacturing in the United States. (nist.gov) Federal auditors have also made clear that this buildout is a long project, not a quick fix. The Government Accountability Office reported that, as of July 2025, Commerce had awarded $30.9 billion across 40 semiconductor projects, with company completion dates stretching as far as 2033. (gao.gov) That leaves the U.S. with a split picture in 2026: far more domestic options for making wafers, tools, and materials over the next decade, but limited relief for the packaging and back-end steps needed to turn those wafers into finished chips right now. (semiconductors.org) (gao.gov)