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Currently, China is the biggest semiconductor market, purchasing more than 50 percent of the global supplyevery year. China continues to be highly dependent on semiconductor imports, sourcing many of its chips from the Dutch giant Advanced Semiconductor Materials Lithography (ASML) and the Taiwan Semiconductor Manufacturing Company (TSMC). TSMC produces around 80 to 90 percent of the world’s advanced semiconductors. China also hopes to develop its manufacturing capabilities. In 2023, Chinese companies bought U.S. chipmaking equipment to make advanced semiconductors, despite U.S. policies aimed at restricting China’s import of semiconductor-related technology, to slow its progress in chip production. 
The U.S. is attempting to counter China’s dominance in the global semiconductor market by rapidly developing its production capabilities and striving for technological advancements. While the CHIPS Act has gone a long way in establishing the U.S. role in the global semiconductor market, some industry experts believe more is still needed. The United States Secretary of Commerce Gina Raimondo recently emphasised the need for federal subsidies in the industry to enhance the position of the U.S. in the international microchips market. She believes this can best be done through the launch of a second CHIPS Act to spur more funding. 
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Raimondo said, “I suspect there will have to be – whether you call it CHIPS Two or something else – continued investment if we want to lead the world.” She added, “We fell pretty far. We took our eye off the ball.” The development of a second CHIPS Act could support the construction of new chip foundries and the financing of semiconductor startups. It could also help the U.S. develop its technological capabilities in the field of specialised and advanced chip manufacturing. 
However, billions in funding have still yet to be allocated from the first CHIPS Act, with the White House only recently announcing a $5 billion investment in a new chip research initiative (NSTC). In February, the U.S. government awarded $1.5 billion to New York-based chipmaker GlobalFoundries, which was its third and largest grant in the field of semiconductors under the CHIPS Act.
Nevertheless, some industry experts believe that federal funding, alongside private investments in the sector, will help the U.S. achieve chip manufacturing independence within the next two decades. The ambitious policy has also encouraged other world powers to develop similar investment schemes. In 2023, the EU introduced the $46.53-billion European Chips Act to boost competitiveness in the international semiconductor market.