Tyler Renn

MGMT $393$ OCA

Professor Bryan Sappington

$2/3/2024$

Chips and Science Act of $2022$

The Chips and Science Act of $2022$ was signed as a law on August $9,2022,$ the law was designed to boost the competitiveness, innovation, and national security in the United States. The law aims to induce investments in domestic semiconductor manufacturing capacity as well. The law is also made to jump$-$start the commercialization of new leading$-$edge technology. Some of the technologies that the act intends to help commercialize are quantum computing, AI$,$ clean energy sources, and nanotechnology. The law creates new regional high$-$tech hubs, leading to a bigger and more inclusive science, technology, engineering, and math workforce in the United States. The act was passed in response to the global shortage of computer chips, which had a massive impact on the automotive, electronics, and manufacturing industries.

The Chips and Science Act will potentially affect many theories in the business world. This act will have an impact on business strategy, as new technology and new uses of AI force companies to be able to adjust and keep up in their market. Companies will have to reevaluate the way that they develop new products and services. New uses of AI will allow companies to have a better understanding of their customers and target market allowing them to adjust the way they promote and advertise, most likely increasing sales.

This act will impact competitive advantages in basically every market. Due to new technology and AI advancements, companies will have new opportunities to gain and potentially lose competitive advantage. Companies will be able to make more informed decisions and expand in ways that before the Chips and Science Act were not nearly as efficient or effective. There will most likely be an effect on the theory of first$-$mover advantage as well. The law may give a temporary advantage to early movers in certain industries, as they will have access to new funding and incentives. Yet, the law may potentially level out the playing field between some early movers and people who enter later, as they will get the same benefits. The act should have a positive impact on the semiconductor and science industries in the United States as it will boost production and strengthen competitiveness.

Another theory that could potentially be impacted by the Chips and Science Act is the Five Forces Model. This act may potentially positively affect the power of buyers as information about prices and quality of chips will be easier to access. This could lead to lower prices and higher quality products for consumers. On the other hand, the power of suppliers will more than likely be decreased. Making it easier for companies to switch suppliers. This will cause more competition amongst suppliers and could lower the prices that suppliers can charge. What will be affected the most in the Five Forces Model will likely be the rivalries among existing competitors. This is because one of the main objectives of the Chips and Science Act is to increase competitiveness in industries. Overall, I think the Chips and Science Act will have a positive impact on the Five Forces Model and company's ability to evaluate industry attractiveness.

I believe that the investment of $52\mathrm{.}7$ billion dollars by the government was worth every dollar. I believe this because the act addresses the global semiconductor shortage which has had a huge impact on various industries. By investing in semiconductor manufacturing and research the United States can become more independent and not rely on foreign chip suppliers. The act also promotes technological innovation. By investing in this sector, the United States will continue to push forward with new technology and be at the forefront of innovation. I value being competitive in technology a lot because technology is used in everything that people do now, and continuing to advance in this industry will allow companies to be the most efficient and effective that they can be$.$

I also think that this act will stimulate job creation and economic growth. I think that the act will create a lot of high$-$paying jobs in the science and math industries. There could also be a multiplier effect on the economy and lead to more jobs in other industries as well as stimulating more jobs all across the United States. Lastly, I think the government's investment was worth it because of the overall increased competitiveness. I think competitiveness between companies is extremely important because, without it$,$ companies won$$t have to continue to innovate and improve. If this happens other countries across the world will push past us and continue to grow.

In conclusion, I think the $52\mathrm{.}7-$billion$-$dollar investment is a crucial step by the government to address the semiconductor shortage, promote technological innovation, stimulate economic growth, and enhance competitiveness. check for plagerism