Biden’s CHIPS Act Suboptimal

The CHIPS Act has been hijacked by the Biden Administration and is suboptimal because it adds significant costs to the manufacturing of computer chips. If manufacturing computer chips in the United States is strategically important, why would you make it more expensive?

On Tues­day, February 28, Com­merce Sec­re­tary Gina Rai­mondo rolled out the new rules for chip mak­ers daying: “If Con­gress wasn’t go­ing to do what they should have done, we’re go­ing to do it in im­ple­men­ta­tion.”

What has she added:

1. Mandated daycare

2. Davis Bacon pay regulations

3. Buy American

4. Consult, engage, coordinate with unions

5. NEPA compliance

6. Source materials from small, minority, and women owned business

7. Com­pa­nies share with the U.S. por­tion of re­turns above pro­jec­tions 

8. No buy­ing back stock for five years

 https://twitter.com/modeledbehavior/status/1630621044921843725?s=46&t=5GC4GDmUOFbaBEOSPYmWoA