{"id":431072,"date":"2023-07-05T09:00:00","date_gmt":"2023-07-05T13:00:00","guid":{"rendered":"https:\/\/staging.automoblog.net\/?p=431072"},"modified":"2023-11-30T16:34:35","modified_gmt":"2023-11-30T21:34:35","slug":"wolfspeed-chips-away-semiconductor-shortage","status":"publish","type":"post","link":"https:\/\/staging.automoblog.net\/wolfspeed-chips-away-semiconductor-shortage\/","title":{"rendered":"Wolfspeed Chips Away at the Semiconductor Shortage"},"content":{"rendered":"\n
Affiliate Disclosure:<\/em><\/strong> Automoblog and its partners may earn a commission when you use the services and tools outlined here for extended warranties, car shipping companies, and auto loan comparisons. These commissions come to us at no additional cost to you. See our <\/em>Privacy Policy<\/em><\/a> to learn more.<\/em><\/p>\n\n\n\n As the third quarter of 2023 approaches, the semiconductor shortage<\/a> that began in 2020 is still having a broad impact on the automotive industry. Automakers around the globe have cut 2.82 million vehicles<\/a> from their production schedules so far this year, partially due to the scarcity of chips, or semiconductor component products. While this is a substantial decrease in production cuts compared to previous years, it is a strong signal that the chip shortage \u2013 and supply chain issues that come with it \u2013 is far from over.<\/p>\n\n\n\n In 2022, the U.S. government passed the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act<\/a>, in part to help alleviate the shortage issue and reduce the chance of future shortages. With the promise of federal subsidies on the way, companies have invested heavily into domestic chip production. But while those investments will likely take years to impact the supply chain, one company \u2013 Wolfspeed Inc. \u2013 was ahead of the curve and is already expanding production.<\/p>\n\n\n\n President Joe Biden signed the CHIPS Act into law<\/a> on August 9, 2022, more than a year after it was introduced in the House of Representatives. The law provides funding and incentives for companies to invest in domestic semiconductor manufacturing as part of an attempt to strengthen domestic supply and decrease reliance on international manufacturers.<\/p>\n\n\n\n Included in the law is $39 billion in subsidies for investments in U.S.-based chip manufacturing and $13 billion for workforce training and semiconductor research. The law also provides a 25% tax credit for spending on new manufacturing equipment.<\/p>\n\n\n\n Sources differ on the exact numbers, but by most accounts, passage of the CHIPS Act and anticipation of its passage have prompted significant domestic investments. The Semiconductor Industry Association (SIA), a leading trade group, estimated that the CHIPS Act prompted $200 billion<\/a> in investments across more than 50 projects between May 2020 and December 2022. The group predicted that those investments would create 44,000 new domestic jobs.<\/p>\n\n\n\nThe CHIPS Act Has Sparked a Wave of Investment in Domestic Chip Manufacturing<\/h2>\n\n\n\n