The CHIPS and Science Act, signed into law in August 2022, allocated $52.7 billion for domestic semiconductor manufacturing and research. The headline number and the flagship announcements (Intel's Ohio fabs, TSMC's Arizona facility, Samsung's Texas expansion) have dominated the public conversation. But for the RF and microwave industry, the most consequential impacts are happening further down the supply chain, at the GaN foundry level, at the compound semiconductor packaging facilities, and at the small-to-midsize manufacturers who machine the waveguide, assemble the modules, and test the subsystems that connect to those chips.
This article examines what the CHIPS Act means specifically for RF: the semiconductor facilities receiving funding, the supply chain segments that matter most for defense and commercial RF programs, and the competitive dynamics that are reshaping where and how American RF hardware gets built.
1. Where the RF Money Is Going
The CHIPS Act funding is not distributed equally across semiconductor types. The majority is directed toward advanced logic fabrication (below 5 nm), which serves the consumer electronics and data center markets. But a significant portion is allocated to "mature node" and "specialty" semiconductors, which includes the compound semiconductor technologies (GaN, GaAs, InP, SiGe) that the RF industry depends on.
| CHIPS Act Category | Estimated RF-Relevant Funding | Primary Beneficiaries |
|---|---|---|
| Commercial fab incentives | $2-3B (RF-relevant portion) | Wolfspeed (SiC/GaN), GlobalFoundries (GaAs/SiGe), Skyworks, Qorvo |
| DoD Microelectronics Commons | $2B | GaN/InP foundries, defense RF MMIC prototyping hubs |
| NIST/standards infrastructure | $500M | Metrology, test standards, workforce training |
| R&D and workforce | $11B total (partial RF relevance) | University programs, NSTC, packaging R&D |
The Department of Defense's Microelectronics Commons program is particularly significant for RF. It establishes regional innovation hubs that provide access to GaN and InP fabrication for defense prototyping at subsidized costs, reducing the barrier for small defense contractors and research labs to design custom MMICs without committing to full production runs.
2. The GaN Foundry Landscape
The domestic GaN-on-SiC foundry capacity has roughly doubled since 2022, driven by both CHIPS Act incentives and organic demand growth from defense and 5G programs. The key domestic GaN foundries include:
- Wolfspeed (Durham, NC / Mohawk Valley, NY): The world's largest SiC wafer manufacturer and a major GaN-on-SiC MMIC foundry. The new Mohawk Valley fab, which began volume production in 2024, is the first 200mm SiC fab in the world.
- Qorvo (Greensboro, NC): Operates GaN-on-SiC foundry lines for both defense and commercial RF. Qorvo's GaN devices are used in AESA radar TR modules, 5G infrastructure, and defense EW systems.
- MACOM (Lowell, MA): Produces GaN-on-Si devices for broadband infrastructure and is expanding GaN-on-SiC capacity for defense applications.
- Raytheon (Andover, MA): Operates a captive GaN foundry for internal defense programs. Not commercially available but represents significant domestic capacity.
The Packaging Bottleneck: Raw GaN die is only part of the equation. The RF industry also depends on advanced packaging, specifically die attach, wire bonding, hermetic sealing, and substrate manufacturing, to turn a GaN MMIC into a usable module. Much of this packaging capacity was historically located in Southeast Asia. CHIPS Act funding is now supporting domestic advanced packaging facilities, but this segment of the supply chain remains the most vulnerable to disruption.
3. Beyond Semiconductors: The Passive Component Chain
The CHIPS Act's focus on semiconductors is necessary, but the RF supply chain extends far beyond the chip. A complete radar TR module, for example, contains a GaN MMIC (the semiconductor), but it also requires a precision waveguide housing, a matched load termination, a circulator, a limiter, an alumina substrate, and a hermetic package with RF-transparent windows. None of these passive components are covered by CHIPS Act funding, yet all are critical to the final system performance.
The passive component supply chain for defense RF has always been dominated by small to medium American manufacturers, companies with 20 to 200 employees, specialized CNC machining capabilities, and deep institutional knowledge of waveguide fabrication. These companies were already under pressure from low-cost overseas competition before the CHIPS Act. The current environment is creating renewed demand for their products as defense programs accelerate and supply chain security becomes a procurement priority.
4. ITAR and Supply Chain Security
The International Traffic in Arms Regulations (ITAR) has always required that certain defense RF hardware be manufactured domestically. But the definition of "domestically manufactured" is being interpreted more strictly in the post-CHIPS Act environment. Defense prime contractors are increasingly requiring that not just the final assembly, but the individual components (waveguides, terminations, connectors, substrates) be sourced from ITAR-registered, U.S.-based manufacturers with documented quality systems.
This is driving a wave of reshoring activity in the passive RF component space. Connectors that were previously sourced from European or Asian suppliers are being re-qualified from domestic sources. Waveguide assemblies that were machined overseas and assembled domestically are now being fully machined and assembled in the U.S. The cost premium for domestic manufacturing (typically 10 to 30% for passive components) is being accepted as the price of supply chain security.
5. What This Means for the Next Five Years
- GaN capacity will outpace demand by 2028: The combined buildout of Wolfspeed, Qorvo, and MACOM GaN lines will create domestic capacity that exceeds current defense and commercial demand. This will drive down GaN device costs, accelerate the displacement of GaAs, and enable new applications that were previously cost-prohibitive.
- Passive component suppliers will consolidate: The small waveguide shops that cannot scale to meet production volumes or cannot invest in the quality systems required by modern defense procurement will be acquired or lose market share to larger, better-capitalized competitors.
- Domestic sourcing requirements will tighten: Expect DFARS (Defense Federal Acquisition Regulation Supplement) clauses to increasingly specify domestic origin not just for semiconductors but for passive RF components, substrates, and packaging materials.
- Lead times will improve: The expansion of domestic manufacturing capacity, both semiconductor and passive, will reduce the 20 to 40 week lead times that have plagued defense RF programs since 2021.
The Bottom Line: The CHIPS Act is not just about building fabs. It is about rebuilding the entire domestic technology stack, from wafer to waveguide to weapon system. For RF component manufacturers who are already producing in the U.S. with established quality systems and defense customer relationships, this is the most favorable market environment in a generation.
RF Essentials is a U.S.-based manufacturer of precision waveguide components, terminations, antenna systems, and integrated assemblies. All products are designed, machined, assembled, and tested in St. Petersburg, Florida. We are ITAR-registered and supply defense, aerospace, and commercial programs directly.