
Beware of Governments Bearing Gifts
The title is a “turn of phrase” from when the Greeks provided the Trojans with the gift of a giant wooden horse. Similarly, whenever a government — in this case Biden’s government – appears to give private industry money for a directed purpose, there are a laundry list of caveats. In this case we are referring to the $280 billion Chips Act. The Act was passed with bipartisan support and much fanfare. The idea behind the Act is to bring semiconductor manufacturing back to this country’s mainland. Semiconductors are essential to our lives as they are used in a multitude of devices. They are also essential to our defense industry. It was deemed high time that we took control of this essential product even though 90 percent of our chips come from Taiwan, a very friendly country. American companies design many of these chips so why should we not manufacture them? In theory, we just need to supply the capital to companies to build the chips in America. Right? Reality set in once the bill was passed. Six months after signing the legislation, the Biden Administration rolled out a litany of requirements for any company receiving the funding from $50… Read More