Mining the CHIPS Act for America's Independence

July 30, 2023

Mining in the United States could potentially have a highly positive impact on the CHIPS Act, a legislative initiative aimed at bolstering domestic semiconductor manufacturing and addressing the global chip shortage.

Securing Critical Minerals

Mining in the U.S. can help secure a stable supply of critical minerals, which are essential for semiconductor manufacturing. Semiconductors rely on various materials, such as silicon, gallium, and rare earth elements. Increasing domestic mining in the U.S. can help reduce the reliance on foreign sources and ensure a steady supply of these essential raw materials for chip production. 

Supply Chain

The CHIPS Act aims to enhance the semiconductor supply chain by investing in and expanding domestic chip manufacturing facilities. A strong supply of raw materials from domestic mining can strengthen this supply chain further. By minimizing the potential disruptions caused by heavy reliance on international suppliers, the U.S. semiconductor industry becomes more resilient, reducing vulnerabilities during times of global chip shortages.

Boosting Manufacturing

Domestic mining can positively impact the CHIPS Act by enabling more robust semiconductor manufacturing in the U.S. A stable supply of critical minerals can foster the establishment of new chip fabrication plants or the expansion of existing facilities and significantly increase domestic semiconductor production capacities.

Job Creation / Economic Growth

Increased mining activities can lead to job creation and economic growth in regions with mining operations. This can indirectly support the semiconductor industry by creating a larger workforce and generating economic activity that can be reinvested into the development of the semiconductor sector.