Year: 2025
Type: dissertation
Abstract: Background: The CHIPS and Science Act was introduced by the U.S. government in 2022 to strengthen domestic semiconductor manufacturing, research, and development. The policy aims to reduce dependence on foreign supply chains and enhance national competitiveness in an increasingly geopolitical industry. Purpose: This study evaluates the financial impact of the CHIPS Act on U.S. semiconductor firms by comparing performance before and after the policy’s introduction and comparing U.S. firms with their international peers. Method: A sample of semiconductor companies from America, Europe, and Asia was selected, covering the period from 2018 to 2024. Financial performance indicators such as stock price performance and revenue were collected from reliable financial databases. The data was analyzed using regression models to evaluate the financial impact of the CHIPS Act. Results and analysis: The results indicate that the CHIPS Act is positively and significantly associated with revenue growth across firms. For stock returns, the CHIPS Act alone showed no significant impact, but U.S. firms showed a positive impact compared to firms in Europe and Asia. Conclusions: The analysis showed that the US based firms experienced higher revenue growth and stock returns after the CHIPS Act compared to firms in Europe and Asia. Employee growth was also investigated, however it was not statistically significant, suggesting that no differential effect for employment in U.S. firms was seen related to non-U.S. firms. Recommendations for future research: Future research could benefit by expanding the present analysis to include a longer time frame, including more firms and other KPIs in the statistical analysis. This will strengthen the conclusion presented in this study and contribute to future research within the field.
Authors: Zhang, Jing, Sandell, Christian
Institution: Blekinge Institute of Technology
Language: English
Topic: Innovation Policy and R&D
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
Funder: Blekinge Tekniska Högskola
OpenAlex ID: W7066744222
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