Spending in the manufacturing sector has ballooned since the CHIPS Act was signed into law last August. Projects underway include everything from plants focused on chip fabrication and EV batteries to consumer goods and cars.
Here, Construction Dive rounds up the biggest of these projects announced since August 2022, sorted by value and location, along with their contractors when available. Please check this page for regular updates.
The U.S. continues to gain ground on other countries’ manufacturing dominance a year after President Joe Biden signed the $52 billion CHIPS and Science Act in August 2022.
The renewed push to revive American manufacturing after decades of offshoring has led to over $503 billion in private company investment as of June 2023, according to the White House. The multibillion-dollar investments scattered across the country range from biotechnology facilities and chip fabrication plants to electric vehicle battery factories and clean energy projects.
Manufacturing construction surges across US
Top projects by value and location since August 2022
Through June, manufacturing construction spending increased nearly 80% in 12 months, according to an Associated Builders and Contractors analysis. On a seasonally adjusted annual rate, spending in the sector hit approximately $195.9 billion during that 12-month span.
Manufacturing activity skyrockets on the heels of 2022’s CHIPS Act
Percent change in construction starts since January 2019, seasonally adjusted dollars
That exponential growth isn’t expected to hit any speed bumps either, according to Richard Branch, chief economist at Dodge Construction Network.
”Public dollars are flooding into the manufacturing and infrastructure sectors,” said Branch. “[That’s] leading to significant growth over the last year.”
The CHIPS Act provides $52.7 billion for American semiconductor research, development, manufacturing and workforce development. This consists of $39 billion in manufacturing incentives, including $2 billion for the legacy chips used in automobiles and defense systems, $13.2 billion in research and development and workforce development and $500 million to strengthen global supply chains, according to the Biden administration. The CHIPS Act also provides a 25% investment tax credit for capital expenses for manufacturing of semiconductors and related equipment.
Some major manufacturing projects to break ground since August 2022 include a $25 billion Samsung chip fabrication plant in Taylor, Texas, and a $20 billion Intel semiconductor chips plant in Licking County, Ohio. Additionally, several $1 billion or more manufacturing projects remain in the pipeline over the remaining months of the year. That should keep construction starts in the sector elevated for the foreseeable future, said Branch.