How the CHIPS Act and OBBB Boost U.S. Electronics Manufacturing and EMS Services 

Let’s be honest: the last few years have been a wild ride for electronics manufacturing. Between global chip shortages, supply chain chaos, and skyrocketing lead times, companies learned how fragile “business as usual” is. A single delay in one component can ripple through an entire production schedule, impacting delivery, costs, and customer satisfaction. 

The CHIPS and Science Act of 2022, followed by 2025 Public Law 119-21 (better known as the One Big Beautiful Bill Act, or OBBB), is transforming the playing field. These policies aren’t just paperwork but game-changing tools for U.S. electronics manufacturing. They inject billions of dollars into domestic production, giving companies like Win2uit the ability to move faster, invest smarter, and deliver with greater reliability. 

In short: CHIPS and OBBB mean fewer delays, more innovation, and better outcomes for our customers. 

A Stronger Domestic Supply Chain

Think back to those frustrating months during the depths of COVID when cars sat half-built because critical chips couldn’t arrive on time. Electronics orders for everything from medical devices to consumer tech stalled at congested ports, and companies were forced to scramble. 

The CHIPS Act addresses these challenges by providing $39 billion in subsidies to expand semiconductor fabrication facilities in the U.S., creating more domestic supply for essential components, and reducing dependence on overseas supply chains. OBBB complements this with a 35% tax credit for new production projects beginning construction by 2026. 

Benefits for EMS Customers

  • Shorter lead times: Domestic sourcing reduces the risk of long shipping delays and keeps projects on schedule.
  • Fewer disruptions: Supply chain issues are minimized when production is closer to home.
  • Lower costs: Reduced shipping and tariff expenses free up budget for technology upgrades and process improvements.
  • Enhanced reliability: Knowing that key components are produced domestically helps electronics manufacturers plan and execute builds more confidently.

Smarter Equipment, Faster Turnarounds

Manufacturing is not a “set it and forget it” industry. Staying competitive requires constant investment in equipment that improves speed, accuracy, and consistency. 

CHIPS provides a 25% investment tax credit for advanced manufacturing equipment. At the same time, OBBB allows companies to deduct 100% of qualifying production property investments, including equipment and facilities, boosting free cash flow, and encouraging domestic onshoring. Companies can reinvest faster in high-precision systems that enhance throughput, quality, and overall capacity, keeping them nimble while delivering consistent results. 

How Customers Benefit

  • Faster throughput: Upgraded SMT lines and automated assembly allow a mix of smaller and larger runs without slowing production. 
  • Higher precision: Automated inspection systems reduce human error and ensure tighter tolerances. 
  • Reduced lead-time variability: Faster retooling and setup times mean customers get predictable schedules. 

Workforce Expansion & Upskilling

Even with cutting-edge machines, skilled people make the difference. The CHIPS Act dedicates $13.2 billion to workforce development, supporting training for engineers, operators, and technicians. OBBB adds further incentives by restoring full-year R&D expensing, reducing the cost of ongoing innovation and staff training. 

Benefits for Clients

  • Skilled teams: Staff trained in the latest equipment and technologies ensure precise production. 
  • Fewer mistakes: Ongoing upskilling reduces errors and improves quality. 
  • Future-ready expertise: Teams prepared for AI, IoT, and other emerging tech. 
  • Operational resilience: Cross-trained employees are better equipped to handle unexpected challenges. 

Reshoring is Real and EMS Manufacturers are Ready

For decades, U.S. manufacturing moved offshore in search of lower labor costs. But the tides are turning. CHIPS has already spurred massive investments from Intel, TSMC, and Samsung to build fabs domestically. OBBB continues that momentum with incentives for new plants, AI infrastructure, and production equipment. 

Why Reshoring Matters for EMS Clients

  • Faster production cycles: Domestic fabs mean fewer delays from shipping or customs. 
  • Closer collaboration: Onshore fabs allow for tighter integration and real-time communication. 
  • Reduced risk: Less exposure to geopolitical instability or trade disruptions. 
  • Sustainability: Shorter supply chains reduce carbon footprint and shipping costs. 

Summary: What This Means for EMS Companies

CHIPS + OBBB Provisions 

35% tax credit  

100% expensing of equipment/facilities  

Restored full-year R&D expensing  

Expanded domestic chip fabrication  

EMS Opportunity 

Lower costs, stronger investment capability  

Accelerated technology upgrades and automation  

Enables innovation, talent development, and operational excellence  

More local clients, faster project cycles and streamlined logistics  

Looking Ahead

CHIPS and OBBB aren’t just about fixing yesterday’s supply chain problems. They’re about building the future. 

  • AI-driven production lines that spot defects before they happen. 
  • Greener, sustainable plants designed for efficiency. 
  • Stronger fab-to-EMS partnerships that streamline every project. 
  • U.S. leadership in electronics manufacturing, setting the pace for innovation globally. 

At Win2uit, we’re ready. We’re more able than ever to deliver precision-built, fast-turn, high-quality electronics manufacturing services, rooted in U.S. capability and backed by strategic federal support.  

A federal program providing funding to expand U.S. semiconductor manufacturing and research.

The One Big Beautiful Bill of 2025, increasing tax incentives for U.S. manufacturing, including a 35% credit and 100% equipment/facility expensing.

They allow faster parts sourcing, smarter automation, stronger workforce development, and more predictable project timelines.

Yes. Domestic fabrication and assembly mean fewer shipping delays, lower risk, and faster delivery.

Full-year R&D expensing and investment credits enable adoption of advanced technology and ongoing team upskilling.

For more information on CHIPs incentives, including how to apply, visit the NLST Chips for America website. 

CHIPS and OBBB are fuel. They give manufacturers like Win2uit the ability to invest faster, deliver smarter, and stay rock-solid reliable. From faster parts sourcing to precision assembly, companies like us are aligned with the policies shaping tomorrow’s supply chain. 

If you’re ready to launch your next project, scale production, or partner with a U.S.-based EMS provider you can trust, contact Win2uit today. Let’s cut delays, boost reliability, and deliver a product that’s as rock-solid as the law behind it. 

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