Capital Flowing to Fabs
The US CHIPS and Science Act, passed in 2022, has now confirmed $22 billion in direct grants and $11 billion in loan guarantees to US semiconductor manufacturing projects, according to the Department of Commerce. The pace of disbursement has accelerated in 2026 as projects that began construction in 2023-2024 have hit manufacturing milestones that trigger grant payments.
Projects Under Construction
Intel's Fab 52 and Fab 62 in Chandler, Arizona are on track for volume production of Intel 18A process technology in late 2026. Samsung's Taylor, Texas fab (3nm process) is targeting 2027 volume production. TSMC's Arizona Fab 21 Phase 1 is already in volume production. Micron is constructing a $20 billion DRAM fab in Clay, New York.
Beyond the US
The semiconductor supply chain diversification effort is global. The EU Chips Act is funding new facilities in Germany (TSMC Dresden), France (STMicroelectronics), and Ireland (Intel). Japan is hosting TSMC's Kumamoto fab (now in production) and a planned advanced-logic fab. India's first major semiconductor fab, funded by the Tata Group and applied Materials partnership, broke ground in 2025.
The Security Rationale
The concentration of leading-edge semiconductor manufacturing in Taiwan — which accounts for roughly 90% of the world's leading-edge chips — has been identified as a systemic risk. Diversification does not eliminate this concentration in the short term, but it creates redundancy over a 5-10 year horizon.
Cost Reality Check
New fabs built outside Taiwan and South Korea cost 40-60% more to build and operate due to lower labor density, supply chain distances, and regulatory requirements. The security premium is real and ultimately embedded in chip pricing.