It’s no secret that the U.S. is undertaking a massive effort to reassure manufacturing. Those efforts should return manufacturing and production to the USA. Reshoring has many benefits including the creation of manufacturing jobs, a reduction in unemployment and balancing trade deficits. It is therefore easy to understand why reshoring stocks have such strong appeal. 

U.S. legislation had reshoring in mind at its creation. The Inflation Reduction Act (IRA) and the CHIPS act incentivize infrastructure construction in the United States. Each has a clear connection to industries including renewable energy and semiconductors which are increasingly important to the economy.

The U.S. continues to undertake efforts to de-risk its supply chain. Reshoring stocks are a prime beneficiary of those efforts. 

Intel (INTC)

Intel (NASDAQ:INTC) stock has been hand-picked by the U.S. government as the country looks to bring chip manufacturing to the U.S. The company was recently awarded up to $8.5 billion in CHIPS act funding expressly for that purpose. 

Historically, Intel was known for the manufacturing of PC chips. However, artificial intelligence is the driving force today. Intel is certain to use the funding to attempt to increase its competitiveness in advanced AI chips. 

The company will use the funding to build fabrication centers and research facilities in Arizona, New Mexico, Ohio and Oregon. To give readers an idea of the time frame, the Ohio fabrication plant is expected to begin AI chip production in 2027 or 2028.

The reshoring efforts are part of a broader strategy to reduce reliance on the island nation of Taiwan. It is there that substantial chip production occurs. Should China invade Taiwan the global chip supply chain would suffer dramatically. Thus, Intel provides a buffer for U.S. chip supply and production, making it attractive.

First Solar (FSLR)

First Solar (NASDAQ:FSLR) is an Arizona-based manufacturer of thin film solar panels. In fact, it is the largest such producer globally. The company is also a significant beneficiary of the Inflation Reduction Act.

The company took advantage of renewable energy incentives baked into the IRA when it announced it would invest $1.2 billion in the construction of a new factory in the U.S. The U.S. is fixated on reducing its dependence on foreign solar products.  

CEO Mark Widmar recently characterized those ongoing efforts as “excellent” in an interview. He also noted that the introduction of the IRA essentially doubled the company’s planned capacity at that time. First Solar was constructing another U.S. manufacturing plant when the incentives were announced. That suggests that the company truly sees value in expanding the domestic manufacturing base rather than simply taking advantage of government subsidies.

Taiwan Semiconductor Manufacturing (TSM)

Taiwan Semiconductor Manufacturing (NYSE:TSM) is, as its name suggests, a Taiwan-based firm. That said, the company is essentially an American one in some sense. It is also a firm that has received substantial CHIPS act funding to bring operations to American soil.

The world’s largest Foundry firm is spending more than $65 billion to create a green field project in the United States. The Department of Commerce will be supporting that construction through $6.6 billion of CHIPS and Science Act funding. 

All told, Taiwan Semiconductor Manufacturing will bring three fabrication plants to Arizona. The first plant is scheduled to begin production in the first half of 2025. Production on the second will begin in 2028 and the third by the end of the decade.

The investment is part of a U.S.-led effort to de-risk its chip supply chain. Thus, it’s clear that the U.S. remains worried about the risk of a Chinese invasion of Taiwan. Therefore, it makes a lot of sense that the U.S. is helping Taiwan Semiconductor Manufacturing by subsidizing its foreign investment in the U.S.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.