As the third quarter of 2023 approaches, the semiconductor shortage that began in 2020 is still having a broad impact on the automotive industry. Automakers around the globe have cut 2.82 million vehicles 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 ? and supply chain issues that come with it ? is far from over.

In 2022, the U.S. government passed the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, 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 ? Wolfspeed Inc. ? was ahead of the curve and is already expanding production.
The CHIPS Act Has Sparked a Wave of Investment in Domestic Chip Manufacturing

President Joe Biden signed the CHIPS Act into law 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.

Included in the law is $39 billion in subsidies for ...