President Donald Trump declared his stance on the state of the union to the United States Congress last night, addressing the controversial CHIPS Act aimed at promoting chip manufacturing within the United States by 2022. The current administration of President Joe Biden has criticized the law as being detrimental.
Using strong language, Trump described the CHIPS Act as a “horrible, horrible thing,” arguing that the government would be spending exorbitant amounts of money with little to no benefit. He pointed out that chip manufacturers were receiving funds without actual production, emphasizing that these companies should invest on their own without government incentives to avoid tax loopholes.
Trump also emphasized that imposing tariffs is the most effective way to attract semiconductor companies to establish manufacturing plants in the country. He suggested that Congress should repeal the CHIPS Act in order to reduce the national debt.
Over the past 2-3 years, numerous companies have received government funding under the CHIPS Act, including Intel, Samsung, Micron, TSMC, Texas Instrument, BAE Systems, GlobalFoundry, and SK Hynix.
Source: Computerworld
TLDR: President Donald Trump criticizes the CHIPS Act as a wasteful government spending, advocates for tariffs to attract semiconductor companies for manufacturing in the U.S. Numerous tech giants have benefited from the government funding under the CHIPS Act.
Leave a Comment