US attaches childcare strings to chip-maker subsidies
BBC NewsAUG 2023
Despite being a consequence of bipartisan efforts to revive the US chipmaking industry, the CHIPS Act has been threatened as several unrelated objectives and unreasonable restrictions have been attached to the grant-giving process while regulatory requirements increase costs of building and operating a plant in the US. It is time for the US to scale back these conditions and facilitate victory in this worldwide race.
The US chip industry is extremely profitable, with firms investing massively in research and development without receiving any subsidies. Yet, the government has claimed that expanding its budget deficit and diverting billions in taxpayer money to influential companies will promote national security, a notion unsupported by the facts as only one-eighth of such interventions are successful in onshoring production.