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Impact of CHIPS Act on Occupational Health and Safety

As America moves ahead with the CHIPs act, an already understaffed OSHA is set to face an uphill battle to implement its safety standards. The authority trusted to keep America’s workers safe had 752 inspectors to ensure the safety for more than 107 million private sector workers in the country. 

With the CHIP Act resulting in a $280 billion boost in America’s industrial sector, the challenges will keep piling up for OSHA. However, there are some ways the overstretched safety authority can still protect workers amidst the emerging challenges. 

What is the CHIPS Act?

The CHIPS Act stands for Creating Helpful Incentives to Produce Semiconductors for America, it is a piece of legislation that aims to revitalize and strengthen the semiconductor industry all over the United States. However, this law was passed in January 2021 as part of the National Defense Authorization Act (NDAA). It seeks to reinvigorate domestic chip manufacturing and create jobs in a critical sector that has been heavily reliant on foreign imports. The Act is driven by the need for the U.S. to maintain its technological edge and national security, reducing dependence on overseas suppliers.

Main Objectives of the CHIPS Act

Here you will read some of the main objectives of the CHIPS Act, mentioned below;

Promoting Domestic Semiconductor Manufacturing 

The motive is this act is to incentivize and support the growth of semiconductor manufacturing in the United States. It even provides funding and incentives for domestic semiconductor research, development, and manufacturing.

National Security 

One of the key impacts of the CHIPS Act is to enhance and improve national security by reducing the reliance on foreign semiconductor suppliers. However, semiconductor suppliers are crucial components in a wide range of technologies, including those used in defense and critical infrastructure.

Job Creation

Another major aim of the CHIPS Act is to create jobs within the semiconductor industry and its related supply chains. By boosting domestic semiconductor manufacturing, is expected to generate employment opportunities in different areas such as construction, manufacturing, research and development, etc. 

Economic Competitiveness

The United States aims to maintain its technological edge and competitiveness on the global stage by investing in semiconductor technology. This is particularly important in areas like artificial intelligence, 5G communications, and other advanced technologies.

Some Crucial Statistics on the CHIPS Act

Before delving into this read, it is important to consider some important statistics about the CHIPS Act and its significance;

  • According to a report by McKinsey & Company, the CHIPS and Science Act of 2022 allocates $250 billion for scientific and semiconductor R&D (R&D).
  • The CHIPS for America Act of 2021’s initiatives are now funded under the act, which went into effect on August 9, 2022.
  • The legislation establishes the greatest publicly sponsored research and development program in the history of the nation.
  • The CHIPS Act aims to address supply chain problems that have impeded manufacturing and research, as well as to restore American primacy in the semiconductor industry.
  • The measure allocates $20 million for the protection of US Supreme Court justices and their families.

The CHIPS Act Promises To Boost the Construction Sector

The CHIPS Act (Creating Helpful Incentives to Produce Semiconductors for America) is one of the significant pieces of legislation aimed at revitalizing the construction industry in the United States. They have garnered significant attention due to their potential economic implications. However, this comprehensive act usually focuses on funding infrastructure projects, enhancing workforce skills, and improving housing conditions.

Additionally, the CHIPS Act offers numerous benefits to the construction sector, and it has an immense impact on Occupational Safety and Health (OHS). Due to the increasing demands of the semiconductor industry, this act commits to investing billions of dollars in the construction and manufacturing sectors. Without a doubt, this infusion of funds will not only facilitate the construction of semiconductor plants but will also create opportunities in different industries.

The Challenges for OSHA

Despite the potential benefits of the CHIPS Act, it offers several challenges for the Occupational Safety and Health Administration (OSHA). OSHA is already grappling with understaffing and resource limitations. The surge in construction and manufacturing activities resulting from the Act will undoubtedly strain OSHA’s already limited resources; it makes things more challenging for the agency to ensure worker safety. 

However, OSHA’s capacity to conduct inspections and enforce safety regulations may be significantly stretched. The CHIPS Act presents several significant challenges for the Occupational Safety and Health Administration (OSHA) as it seeks to oversee the health and safety of employees within the construction sector. Some of the key challenges that OSHA will face in light of the CHIPS Act include:

Workforce Skill Development

The CHIPS Act’s focus on improving workforce skills is commendable, but it also results in an influx of novice workers joining the construction industry. There are lots of inexperienced workers who are more prone to severe illnesses, injuries, and accidents. OSHA must need to address the need for enhanced training and supervision of these new entrants to mitigate the potential safety risks.

Technological Advancements

The CHIPS Act encourages the incorporation of advanced construction technologies to expedite projects. While these technologies can enhance efficiency and reduce costs, they also introduce new safety concerns. OSHA will need to stay abreast of evolving technology in the construction sector and adapt its safety regulations and inspection procedures to address the associated risks.

Fast-Paced Projects

One of the key features of the CHIPS Act is its emphasis on expeditious project execution. This could lead to a faster pace of construction projects. Faster project timelines can potentially compromise safety as workers may face tighter deadlines and increased pressure to complete tasks quickly. OSHA will need to adapt its safety regulations to ensure that speed does not come at the cost of worker safety.

Increased Workforce and Construction Activity 

The CHIPS Act aims to boost construction activities across the country by allocating significant funds to infrastructure projects. While this is promising for economic growth and job creation, it can lead to an influx of construction workers and increased construction sites. With a larger workforce and more construction sites in operation, OSHA faces the challenge of effectively regulating and ensuring the safety of workers on these sites. An increase in construction activities may strain OSHA’s resources and necessitate additional inspections and oversight to maintain safety standards.

Resource Limitations

OSHA already faces resource constraints, including staffing and funding limitations. The increased demand for safety oversight in the construction sector under the CHIPS Act may strain OSHA’s resources, potentially affecting the agency’s ability to conduct thorough inspections and enforce safety standards effectively.

How Should OSHA Prepare For The CHIPS Act?

If you want to prepare for the CHIPS Act that aims to boost the construction sector, then it requires the Occupational Safety and Health Administration (OSHA) to proactively address potential challenges to workplace security and well-being. Let’s have a look at the essential steps OSHA must take to prepare for the CHIPS Act.

Revision of Safety Standards

OSHA should assess and, if necessary, revise existing safety standards to accommodate the fast-paced nature of construction projects under the CHIPS Act. New regulations may need to address specific issues related to tight project timelines and the incorporation of advanced technologies, with an emphasis on maintaining worker safety. 

OSHA Safety Training and Education 

To mitigate the risks associated with a potentially inexperienced workforce, OSHA should collaborate with industry stakeholders to enhance training programs and provide comprehensive safety education. This could include the development of specialized training modules for new entrants, as well as ongoing training and skill development for experienced workers to keep up with evolving construction technologies.

Integration of Technology

Embracing technology is essential for OSHA to keep pace with the construction sector’s advancements. However, it is crucial for OSHA to invest in the development of digital tools and resources to streamline inspections, data collection, records, and safety reporting. Using drones and cameras are one of the best options to monitor hazards properly and implement safety procedures properly. This will enable them to get a quicker response to safety violations and improve communication with construction companies.

Increased Collaboration

The CHIPS Act’s success in boosting the construction sector will depend on collaboration among various stakeholders, such as; government agencies, construction companies, labor unions, and safety organizations. OSHA should actively engage with these parties to ensure that safety remains a top priority. Regular communication, joint safety initiatives, and the sharing of best practices can help in creating a safer working environment.

Enforcement of Legal Laws and Compliance

OSHA should strengthen its enforcement capabilities by increasing penalties for safety violations and conducting more frequent inspections. A strong enforcement stance can serve as a deterrent to non-compliance and further promote safety in the construction industry.


At last, it has been concluded that the CHIPS Act usually focuses on revitalizing the construction sector which holds immense importance for economic growth and job creation. But, the thing is there are several challenges it presents in terms of occupational health and safety, which cannot be ignored. However, OSHA needs to proactively prepare for the fast-projects, increased workforce, & changing technology. By enhancing safety training and embracing technology, OSHA can effectively address these challenges and ensure that the construction industry flourishes with an unwavering commitment to worker safety