The United States is undergoing a profound shift in its industrial landscape, fueled by the $39 billion CHIPS and Science Act. Designed to invigorate domestic semiconductor production, the Act has triggered a surge in manufacturing facility construction, with activity growing 156% since 2019. This unprecedented boom marks a pivotal moment in American manufacturing, prioritizing technological independence and sustainable development while reshaping the national economy.
At the heart of this growth lies a recognition of the strategic importance of semiconductors. As the backbone of modern technology, these microchips power everything from smartphones and cars to advanced defense systems. The global semiconductor shortage that surfaced during the COVID-19 pandemic exposed vulnerabilities in the supply chain, highlighting the need for localized production. The CHIPS Act addresses this challenge head-on by providing funding and incentives to attract investments in semiconductor manufacturing and research.
Intel’s $20 billion chip plant in New Albany, Ohio, stands as a beacon of this resurgence. Dubbed “Ohio One,” this facility is set to become one of the world’s largest semiconductor manufacturing sites. Intel CEO Pat Gelsinger has been vocal about the project’s significance, stating, “This isn’t just about factories; it’s about reimagining the role of manufacturing in America. By investing in local production, we’re securing critical technologies and creating thousands of high-paying jobs.” The facility is expected to employ over 3,000 workers once operational, with tens of thousands more jobs generated indirectly through construction and supply chains.
“This isn’t just about factories; it’s about reimagining the role of manufacturing in America. By investing in local production, we’re securing critical technologies and creating thousands of high-paying jobs.”
The CHIPS Act’s impact extends beyond individual projects like Intel’s. Companies such as Taiwan Semiconductor Manufacturing Company (TSMC), GlobalFoundries, and Micron Technology are also ramping up investments in the U.S. Micron, for example, recently announced plans for a $100 billion semiconductor campus in New York, a project that represents one of the largest investments in the history of American manufacturing.
The construction boom accompanying the manufacturing revival is reshaping communities nationwide. Data from Dodge Construction Network reveals that semiconductor facility construction starts rose 29% year-over-year in 2023, reflecting the rapid mobilization of resources. This surge is not just about physical structures; it’s creating ripple effects in associated sectors such as steel, concrete, and specialized construction services.
David Turk, Deputy Secretary of the Department of Energy, remarked on the broader implications: “Manufacturing construction is an engine for economic growth. The CHIPS Act is not just funding factories—it’s driving innovation and revitalizing communities, particularly in regions previously overlooked by major industrial projects.” Ohio, Arizona, and Texas have become hubs for this activity. Phoenix, for instance, has seen significant developments around TSMC’s new fabrication plant, which includes state-of-the-art facilities designed to produce 3nm chips—the cutting edge in semiconductor technology. These projects are drawing skilled labor and technical expertise to regions that are becoming centers for advanced manufacturing innovation.
A notable aspect of the CHIPS Act-driven construction boom is its alignment with environmental goals. Many of the new facilities are being designed with sustainability in mind, integrating renewable energy sources, efficient water use, and eco-friendly construction methods. Intel’s Ohio One plant will operate largely on solar power, and its design incorporates energy-saving measures that reduce the overall carbon footprint. Commerce Secretary Gina Raimondo highlighted the significance of these initiatives, stating, “The CHIPS Act is catalyzing investments that will position the U.S. as a global leader in advanced manufacturing while addressing climate goals. It’s a win-win for economic and environmental sustainability.”
The push for sustainable practices extends to other projects as well. TSMC’s Arizona facility is implementing water recycling systems capable of processing millions of gallons daily, essential in a water-scarce state. Meanwhile, Micron’s New York plant is partnering with local authorities to ensure the use of clean energy sources, underscoring a commitment to reducing environmental impacts across the industry.
While the CHIPS Act has sparked enthusiasm, the rapid pace of development comes with challenges. Skilled labor shortages, material supply chain bottlenecks, and the complexity of semiconductor manufacturing remain hurdles that the industry must overcome. However, these challenges are also opportunities to innovate and strengthen the ecosystem. The Biden administration has emphasized workforce development as a key focus, with initiatives to train the next generation of workers for advanced manufacturing roles. Partnerships between educational institutions and industry players are being forged to address the skills gap. For example, Intel has partnered with Ohio universities to create specialized programs that align with the needs of its semiconductor facilities.
Additionally, the construction boom has driven demand for advanced construction technologies. Modular construction techniques, drone-enabled site monitoring, and AI-driven project management are increasingly being deployed to streamline operations and mitigate delays. This technological infusion is transforming how facilities are built and setting new standards for efficiency and precision.
As the CHIPS Act continues to catalyze investments, its impact is likely to extend well beyond manufacturing. By prioritizing domestic production, the U.S. is fostering resilience in critical supply chains, reducing reliance on foreign suppliers, and positioning itself as a leader in cutting-edge technologies.
For regions like Ohio, Arizona, and New York, the influx of manufacturing and construction activity is creating economic momentum that could reshape local economies for decades. “We’re seeing not just factories, but entire ecosystems emerge around these projects,” said Gelsinger. “It’s about building a sustainable foundation for America’s future in technology.” This resurgence in manufacturing is also serving as a blueprint for how policy and private investment can converge to address national priorities. The CHIPS Act demonstrates that targeted initiatives, supported by robust partnerships and forward-thinking strategies, can drive transformational change.
The U.S. manufacturing renaissance, spurred by the CHIPS Act, represents a historic shift toward domestic innovation, sustainability, and resilience. From creating thousands of high-paying jobs to advancing climate goals and bolstering national security, this movement is redefining what manufacturing means in the 21st century. As groundbreaking projects like Intel’s Ohio One and TSMC’s Arizona plant come to fruition, the ripple effects are set to transform industries and communities alike. As Raimondo aptly put it, “This is a moment of opportunity. By investing in manufacturing today, we’re shaping the economic, technological, and environmental future of America.”
