A sudden decline in one of the most thriving industries of Asian countries, such as Taiwan, China, and South Korea, could have a significant impact on the Asian economy. The US government is offering high stakes and subsidies to attract growing microchip firms. With a promised $39 billion for research and development within the US boundaries, the production of the semiconductor industry in the Asian economy could decrease.

The CHIPS and Science Act involves a significant investment to increase the production of American-made semiconductors, promote domestic manufacturing, and create advancements in America's scientific research and technological development. This is taking a toll on Asia, as it is presently one of the largest semiconductor suppliers. Methods of protectionism have also been implemented by the US government, especially on China, further limiting the production in the semiconductor industries of due to restrictions on chip-making tools.

According to research, in the year following the enactment of CHIPS, US companies have announced more than $166 billion in semiconductor and electronics manufacturing. Whereas, East and Southeast Asia is home to 10 of the 16 semiconductor exporters and the top six suppliers, accounting for 84 per cent of global exports in 2021. With Taiwan producing over 60% of the world's semiconductors, making up 15% of it's economy, there would be a great fall in its production. Along with a fall in production comes lower living standards, influencing the rate of inflation in such countries. 

Increasing chip production within US boundaries could reduce US' reliance on Asian chip imports, leading to a decline in Asian exports. To boost their economies and stay ahead in the technological race, South Korea, Japan, and Taiwan have taken the initiative to implement subsidiary programs for further chip development.