Under the Trump administration, the policy shifted significantly. Intel was initially promised CHIPS Act funding in March 2024 to expand domestic manufacturing capacity.
However, by August 2025, access to those funds became contingent on the US Government receiving a 10 percent equity stake in the company.
This shift, positioning the federal government as a direct shareholder, represents a significant departure from traditional subsidy-based industrial policy.
Manufacturers now weigh financial incentives against political involvement, softening the long-term outlook for US semiconductor expansion.
Semiconductor investment is a critical driver for industrial automation and motion control. Changes to major subsidy programs influence the timing, scale, and certainty of semiconductor equipment spending.
Each new fabrication facility represents a substantial investment in motion control
systems, given the high level of precision required.
When fabrication projects slow or stall, motion control suppliers feel the impact quickly.
Prior to policy changes, US semiconductor and electronics machinery revenue within the motion controls market was forecast to grow strongly through 2029. Revised projections now indicate slower expansion as uncertainty dampens investment.
Global policy and competition
International strategies contrast sharply with the US approach.
The European Chips Act, backed by €43 billion in public and private funding, emphasises coordination over control. It supports cross-border R&D initiatives and state-aid flexibility that allows member nations to fund semiconductor fabrications.
Crucially, it does so without direct ownership or political intervention. The result is a more predictable, collaborative environment that has attracted significant foreign
interest, including from US and Asian firms.
In Asia, Japan’s Chip Strategy and South Korea’s K-Chips Act follow similar patterns. Both emphasise long-term stability, tax incentives, and clear separation between government support and corporate governance.
When contrasted with these partnership-driven models, the US approach appears increasingly interventionist.
The conversion of CHIPS funding into government equity has raised new questions about the boundary between public subsidy and state control.
For investors and manufacturers evaluating long-term commitments, clarity and consistency are now as important as the incentives themselves.
Regional investment choices for suppliers within the motion controls and automation ecosystem are becoming increasingly important.
Those regions offering transparent, partnership-based subsidy programmes are likely to capture a larger share of motion control demand
tied to semiconductor expansion.
This is reflected in the CAGR for countries with more transparent policies. South Korea, Taiwan, and Japan are expected to grow revenue at 2.5 percent, 5.5 percent, and five percent respectively, from 2023 to 2029.
Impact on motion controls
The motion controls market in the US is projected to see strong growth over the next decade, driven largely by semiconductor investment.
In the US, the semiconductor and electronics sector revenue is expected to grow at a 6.3 percent CAGR from 2023 to 2029, compared with 3.5 percent overall market growth, making it the second-fastest-growing industry in the country.
However, as federal policy in the US shifts, there is legitimate concern that the previously anticipated growth from the
semiconductor sector could be undermined.
This growth projection for the semiconductor and electronics machinery industry was prior to the Intel announcement.
It demonstrates how the US semiconductor market was on track to outpace overall motion control growth.
What’s next?
If this trend continues, it’s possible that semiconductor manufacturers will prioritise production expansion in other regions.
Regions that successfully attract these redirected investments from the US could see an even sharper uptick in demand for motion controls over the next decade.
Europe, Japan, and South Korea are emerging as preferred alternatives for semiconductor expansion, thanks to transparent subsidy structures and predictable long-term policy.
For the US, the risk lies not in losing capacity, but in ceding momentum. If investors and suppliers perceive the US market as unpredictable, they will redirect resources to regions where industrial policy is stable and transparent. This could have long-term implications for the global motion control landscape.