The CHIPS Act, formally known as the Creating Helpful Incentives to Produce Semiconductors Act, was enacted in 2022 to strengthen U.S. semiconductor manufacturing and research. It provides federal funding and incentives to companies building or expanding chip production facilities in the United States, aiming to reduce dependence on foreign suppliers and bolster national security. The legislation is a key part of U.S. industrial policy in response to global supply chain disruptions and competition in advanced technology.