Executive Summary 

In August of 2022, the $280 billion Chips and Science Act became public policy. Its passage marked a commitment by the U.S. government to re-shore the production of semiconductors (Johnson, 2022). To drive economic growth and address national security concerns, the bill dedicates $52 billion to subsidize semiconductor manufacturing with another $24 billion in tax breaks for semiconductor manufacturing equipment (Badlam et al., 2022). With the passage of this legislation, U.S.-based Qualcomm is poised to benefit from its impact on the industry.

Using a qualitative and quantitative approach, the report will analyze the impact of the Chips and Science Act on Qualcomm and offer recommendations. Utilizing concepts from Peng’s institution-based view (Peng, 2021) and Porter’s Diamond of National Advantage (Porter, 1990), the report will discuss how the Chips and Science Act will improve the four factors of national advantage (factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry) within the U.S semiconductor industry, and how these improvements will impact Qualcomm’s organizational culture and business strategy.

The analysis shows that as each of the four factors of national advantage improves, Qualcomm should be positively impacted. Improvements in skilled labor, increases in industry competition, increases in related/supported industries competition, and the re-shoring of domestic rivalries will all benefit Qualcomm’s business strategy.

To take advantage of the Chips and Science Act, this report recommends that Qualcomm 1) leverage its brand reputation as a U.S-based semiconductor company, 2) play an active role in the implementation of the Chips and Science Act, and 3) embrace domestic market competition.