Engineering, Procurement and Construction Breakbulk & Project Cargo
A chipper outlook
Extended tax credits for chip makers to boost heavy-lift cargo demand
By Autumn Cafiero Giusti
The passage of the One Big Beautiful Bill Act by the US Congress in July could energize the already active build-out of US semiconductor chip manufacturing plants, potentially driving up the demand for breakbulk and project cargo logistics and shipments.
But for that to happen, the semiconductor space will need to overcome setbacks that have resulted in delays on some key construction projects for these multibilliondollar facilities.
The new legislation, which President Donald Trump signed into law on July 4, expands the tax credit to 35 % from 25 %, which became available under the US CHIPS and Science Act. Passed in 2022, the CHIPS Act incentivizes the domestic research, development and manufacturing of semiconductors, microchips that serve as the brains of most modern technology applications, including smartphones, automobiles, medical devices and datacenters.
When lawmakers approved the CHIPS Act, they designated $ 39 billion— about three-quarters of the $ 52.7 billion in CHIPS funding— for the construction of semiconductor fabrication facilities, often referred to as“ fabs.”
John Lu, global sector head of semiconductor fabrications for the industrial projects unit of DHL Global Forwarding, told the Journal of Commerce that the increased credit sends a clear signal to the semiconductor industry that it has the current administration’ s backing to bring manufacturing back to the US while supporting investments that manufacturers have poured into constructing new facilities.
“ It simply reinforces the demand for project cargo logistics, and potentially breakbulk services required to support the growing construction needs,” Lu said.
John Lu Global Sector Head of Semiconductor Fabrications, DHL Global Forwarding
Setbacks hinder scale-up
But whether the incentive translates to more construction of fabrication facilities remains to be seen. Lu pointed out that multiple US fab
Bechtel construction projects have encountered delays for various reasons. Among the disruptions, companies have cited challenging market conditions, fluctuating customer demands, skilled labor shortages and the slow disbursement of government funding.
“ It’ s not confirmed that more facilities may be planned, as there requires a tremendous technological driving force to spike up the demand for more fabs,” Lu said, adding that artificial intelligence and internet of things technologies are the primary drivers of semiconductor manufacturing facility development.
In February, Intel for a second time pushed back the completion date of its $ 20 billion Ohio One project, a pair of semiconductor production facilities that have been under construction in central Ohio since 2022. Intel now estimates it will be at least 2030 before the first facility is complete. Initial estimates were for production to begin in 2025, but that projection was later adjusted to 2027.
10 Journal of Commerce | September 2025 www. joc. com