To address U.S. semiconductor manufacturing capacity challenges, Congress passed the CHIPS Act of 2022, which includes semiconductor manufacturing grants, research investments, and an investment tax credit for chip manufacturing, as well as the Inflation Reduction Act (IRA). How can multinational companies take advantage of these incentives at both a Federal and a State level?

• Navigating eligibility and terms and conditions for obtaining the financial assistance under the CHIPS Act
• Evaluating whether the incentives under the CHIPS Act will be enough to overcome the financial disruptions caused by the New Rule (such as loss of sales and market share resulting from the new export control rules)
• Defining ineligibility if company is owned by a “Foreign Entity of Concern”
• Monitor and get ready for retaliatory measures that may be imposed by China (e.g., refusal to approve foreign mergers and acquisitions; trade controls of critical inputs such as rare earth elements)
• State-level tax grants, discretionary incentives, tax credits, exemptions, and abatements in Ohio, Tennessee, Michigan
• The proposed rule “Preventing the Improper Use of CHIPS Act Funding” and related federal corporate clawback measures
• Synchronization possibilities between US CHIPS Act and EU Chips Act