By now it's clear that the Chips and Science Act — which includes a $52 billion splurge for the semiconductor industry — is unlikely to work as intended. In fact, its looming failure is a microcosm of all that's wrong with America's current approach to building things.  Photographer: Andrew Spear/Getty Images Passed last year with bipartisan support, the law was meant to revive US chipmaking capacity. Although America is a world leader in cutting-edge chip design, its share of global semiconductor manufacturing has declined from 37% in 1990 to about 12%. Given the importance of such chips to the economy and especially to national security — the Defense Department needs about 1.9 billion of them a year — a more or less coherent case could be made for subsidies, prudently applied. Yet simply writing checks was never going to be enough. Producing chips in the US still takes 25% longer and costs nearly 50% more than doing so in Asia. Significant policy changes would be needed for US-based manufacturers to be even remotely competitive. As things stand, they face three serious impediments — all inflicted by the government.
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