Time’s running out. The Biden administration is in a mad dash to finalize billions in CHIPS Act deals before Trump takes office. With $39 billion in funding at stake, there’s no room for delays.
The CHIPS Act, signed in 2022, was supposed to bring chip production home. The goal? Secure supply chains and cut reliance on Taiwan for advanced semiconductors. It’s a big deal for U.S. manufacturing. But there’s a catch. While 90% of the money is allocated, most of it hasn’t been locked down yet. Only two deals, worth $6.6 billion, are fully finalized, according to the Commerce Department.
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Commerce Secretary Gina Raimondo promised to allocate every dollar by the end of the year. But progress? It’s been slow. And patience is wearing thin. “We are disappointed by how long and how slow the dispensing of funds has been,” said Intel CEO Pat Gelsinger, as reported by Bloomberg. He’s frustrated. The process has dragged on for over two years.
President Joe Biden’s team is trying to speed things up. Last week, they announced a $6.6 billion deal with Taiwan’s TSMC. At least $1 billion should roll out before the year ends. But there’s still a lot left to sort out. Intel, the biggest potential recipient, is still negotiating terms to unlock its share.
President-elect Donald Trump, meanwhile, isn’t a fan of the CHIPS Act. He’s been vocal. He thinks tariffs are a better way to push companies to make chips here. On a podcast with Joe Rogan, he called tariffs the smarter move. His team might shift gears when he takes office. But here’s the thing: once a CHIPS Act deal is finalized, it’s tough to undo. They’re legally binding unless companies don’t hold up their end of the bargain.
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Analysts like Jeff Koch say Trump could slow things down, even if he doesn’t scrap the CHIPS Act. “This had the ancillary benefit of pushing the Biden administration to cut through red tape and disburse CHIPS Act funds while still in power,” Koch told Business Insider.
There’s also pressure from the clock. January is fast approaching. Biden’s team knows the window to finalize these agreements is closing. The next administration could stall or rewrite the rules, adding more uncertainty to a complicated process.
And it’s not just about securing funding. There are benchmarks. Companies like Intel need clear terms to access the money. Another layer of bureaucracy is slowing things down. For Biden, it’s a race against time to solidify the vision of the CHIPS Act before Trump’s team takes over.
The stakes are high. America needs these funds locked in to compete globally. Chips power everything from smartphones to cars, so falling behind isn’t an option. All eyes are on whether Biden can pull this off in time. The pressure’s on and there’s no room for missteps.
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This article ‘We Are Disappointed.’ Intel CEO Criticizes Delays As Biden Pushes $6.6 Billion To TSMC originally appeared on Benzinga.com
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Source: finance.yahoo.com