A comprehensive analysis by the Semiconductor Industry Association reveals that the US, EU, Japan, and India have collectively committed $380 billion to build domestic chip manufacturing capacity — the largest industrial policy initiative since World War II.
The spending is driven by a single strategic imperative: reducing dependency on Taiwan, which currently manufactures 92% of the world's most advanced semiconductors through TSMC.
The US CHIPS Act accounts for $280 billion of the total, with major fabrication plants under construction in Arizona (TSMC, Intel), Ohio (Intel), Texas (Samsung), and New York (GlobalFoundries).
The EU's European Chips Act contributes $47 billion, targeting 20% global chip production share by 2030 — up from 8% today. Intel's €33 billion fab in Magdeburg, Germany, is the centrepiece.
The timeline is challenging. Building a state-of-the-art chip fab takes 3-5 years. The first US-manufactured advanced chips (below 5nm) are not expected until late 2027 at the earliest.