How the US CHIPS Act is Reshaping the Global Semiconductor Landscape For several years, the technological hegemony competition between the US and China, which has shaken the global economic order, is now entering a new phase centered on the semiconductor industry. In particular, the CHIPS and Science Act, enacted by the US in 2022, aims not only to strengthen semiconductor technological capabilities but also to reorganize the global semiconductor supply chain. This law garnered attention from both industry and government, signaling a 10-year, $280 billion investment aimed at rebuilding the US semiconductor manufacturing base and strategically securing cutting-edge chip technology. Of this, $52.7 billion is directly allocated to the semiconductor sector, with the remainder dedicated to promoting scientific research and innovation. It is now more crucial than ever for the Korean semiconductor industry to determine its position in the global market. The CHIPS Act is not merely limited to expanding manufacturing capabilities. Out of the $52.7 billion allocated to semiconductors, $39 billion is designated for manufacturing incentives, $11 billion for research and development programs, and $2 billion for defense-related chip production, thereby strengthening US semiconductor industrial policy in detail. These plans represent a new paradigm, shifting from decades of market-driven development to a government-led strategy. While the US maintains strong leadership in chip design, its manufacturing capacity has sharply declined from 36% of global production in 1990 to 10% in 2020. This clearly indicates why the US is investing massive funds into rebuilding its manufacturing base. As of July 2025, the US Department of Commerce has actively implemented this strategy by disbursing over $30 billion in manufacturing subsidies to 19 companies in key regions such as Arizona, Ohio, and New York. In August 2025, during the Biden administration, the US government invested a total of $8.9 billion in Intel, utilizing $5.7 billion from CHIPS Act incentives and $3.2 billion from the Secure Enclave program. Concurrently, cooperation to attract semiconductor manufacturing and R&D investments from Micron and TSMC within the US has also been strengthened. Experts analyze that through these large-scale investments and export controls, the US intends to narrow the technological gap with major semiconductor competitors like China, the European Union, and South Korea, and maintain its hegemony. However, the CHIPS Act carries implications beyond mere protectionist policies. The US has implemented strict export controls to limit China's access to advanced technology and is pursuing a comprehensive approach that emphasizes cooperation with allies. This strategy stems from the recognition that the global semiconductor production architecture could become a strategic vulnerability. Semiconductors are deeply integrated into American society through electronic devices, consumer gadgets, and critical infrastructure, especially since cutting-edge chips provide essential processing power for artificial intelligence systems. The US perceives this as a core national security issue. Following the inauguration of the Trump administration in January 2025, subtle shifts have emerged in US semiconductor policy towards China. In December 2025, the Trump administration reversed the ban on exporting Nvidia's high-performance AI chip, the H200, to China. Instead, starting January 2026, the Department of Commerce's Bureau of Industry and Security (BIS) transitioned to a policy of issuing export licenses through individual reviews under strict conditions. Specifically, these conditions included third-party testing within the US before export, limitations on shipment volumes to China, and the imposition of a 25% tariff. This shift suggests that technology restrictions have become a core tool for economic statecraft, beyond simple security measures. This is interpreted as an intent to secure a strategic advantage while maintaining the competitiveness of US companies by allowing controlled access rather than a complete ban. Meanwhile, the US National Defense Authorization Act for FY2023 (NDAA) warned that major Chinese semiconductor foundries such as SMIC (China's largest semiconductor manufacturer), CXMT (memory chip manufacturer), and YMTC (3D NAND flash memory manufacturer) pose an unacceptable risk to US national security. Consequently, the Federal Acquisition Regulation (FAR) Council proposed that federal agencies should restrict the purchase of electronic products and services that rely on semiconductors produced by these companies. Furthermore, it encouraged companies participating in federal contract bids to strengthen due diligence on their supply chains, holding them accountable for intentional failures in due diligence, while offering civil immunity to companies that proactively report relevant information. This implies that private companies must also e
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