U.S. chip, EV industries struggle to take off despite huge subsidies

NEW YORK/WASHINGTON/PALO ALTO, California -- Two years after the U.S. passed major legislation to promote its domestic chip and electric vehicle industries, getting projects to the actual production stage and reducing supply chain reliance on China remain a challenge.

The Inflation Reduction Act (IRA) and CHIPS and Science Act, both enacted in August 2022, have allocated roughly $500 billion in funding toward EVs, renewables and semiconductors to bolster production in areas where China has rapidly risen in prominence.