INSUBCONTINENT EXCLUSIVE:
industrial policy.Signed into law by President Joe Biden in 2022, the act aims to strengthen U.S
semiconductor manufacturing and reduce reliance on foreign suppliers, particularly from China and Taiwan.Trump criticized the act as
unnecessary government spending, arguing that market-driven solutions, such as tariffs on imported chips, would achieve the same goals
without distorting markets.The CHIPS Act provides $39 billion in manufacturing grants and $13 billion for research and workforce development
It also includes tax credits to incentivize domestic chip production.It has already spurred over $400 billion in private investments from
companies like Taiwan Semiconductor Manufacturing Co
(TSMC), Samsung, and Intel
TSMC alone announced plans for a $100 billion expansion in the U.S., including five new fabs.State-Led vs
to the U.S., eliminating the need for subsidies
Critics of his stance argue that such tariffs could increase costs for downstream industries reliant on semiconductors.Meanwhile, proponents
of the CHIPS Act highlight its role in creating tens of thousands of jobs and securing critical supply chains
The debate reflects a broader ideological divide between state-led industrial policy and market-driven strategies.While the CHIPS Act
imposes conditions like restrictions on investments in China, skeptics question whether subsidies mask inefficiencies
manufacturing costs are 44% higher than those in Taiwan.This decision has far-reaching implications for investors, policymakers, and
businesses navigating global competition in advanced technologies
