The CHIPS Act and industrial policy, explained

Is America giving up on the free market?

semiconductor
(Image credit: Illustrated | Gettyimages)

The United States is going to start making more of its own electronics, and taxpayers are going to pick up a good chunk of the tab.

Congress has passed the CHIPS Act, a bill that devotes billions of dollars to the research and manufacture of semiconductor chips used in "the nation's smartphones, cars, computers, medical equipment, and weapons systems," Barbara Sprunt reports for NPR. The bill had support from both Democrats and Republicans, who say it "will lower U.S. reliance on China for chip manufacturing, which they say poses a national security risk."

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