The U.S. CHIPS and Science Act is making progress in expanding domestic semiconductor manufacturing, but its research and development program is falling behind. A Government Accountability Office (GAO) report finds that only about 5% of the $11 billion appropriated for semiconductor R&D has been allocated, tells IEEE Spectrum.
Passed in 2022, the CHIPS Act was designed to strengthen U.S. semiconductor manufacturing and technological leadership. Manufacturing incentives appear to be delivering results. As of April 2026, 24 of 144 milestones across 49 funded projects had been completed, triggering associated payments. The Department of Commerce has since announced seven additional projects.
GlobalWafers, for example, is building silicon wafer facilities in Texas and Missouri with CHIPS Act grants. The company completed the first phase of its Texas facility and subsequently received $200 million. The GAO expects most supported manufacturing projects to be completed by 2028 and all by 2033.
The R&D program presents a different picture. Commerce has disbursed about $506.8 million of the $11 billion originally appropriated. Since the current administration took office, the department has canceled $7.8 billion in planned R&D funding, much of which was intended for Natcast to operate the National Semiconductor Technology Center.
The GAO also found that Commerce has not provided sufficient detail showing how the center will align with the National Strategy on Microelectronics Research. Critics warn that inadequate investment could weaken long-term U.S. leadership in semiconductor technology even as domestic manufacturing expands.
Commerce has funded approximately $347 million in metrology research and less than $5 million through a small-business research program. It has also directed $900 million to other companies outside the original R&D framework and proposed additional funding for quantum computing.
The findings highlight a growing imbalance: America is successfully building semiconductor production capacity, but the research needed to sustain future technological leadership remains uncertain.
