The bipartisan, much-touted CHIPS and Science Act, one of the biggest legislative victories of President Biden’s tenure, has a number of variations that critics argue defeat the purpose of the law. , closely tied to equity and inclusion (DEI) efforts.
This law is Biden signs in August 2022aims to strengthen the U.S. semiconductor supply chain and allocates $52.7 billion to establish the CHIPS for America Fund, which supports private investment in domestic research and manufacturing. However, a review of the federal application shows that funding is contingent on the applicant meeting his or her own set of DEI requirements.
“If you look at the funding opportunity notices that the Department of Commerce requires to get funding, the words diversity, equity, inclusion, and DEI requirements are literally sprinkled throughout,” Strive said. said Chris Nicholson, head of research. asset management. Strive, founded by former presidential candidate Vivek Ramaswamy, has assets of more than $1 billion.
“This funding is kind of announced, but it’s not actually given,” said Nicholson, who studies the semiconductor industry. “That’s the key here. Otherwise, you won’t even be given it.” [funding recipients]Step by step they will be met and you will prove that you meet all of these DEI requirements. ”
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President Biden will speak virtually at a meeting with CEOs and labor leaders on the CHIPS Act on July 25, 2022. (Brendan Smialowski/AFP via Getty Images)
Months after Biden signed the CHIPS and Science Act into law, the Department of Commerce’s National Institute of Standards and Technology (NIST) offered its first funding opportunity to companies looking to develop semiconductor projects. NIST Director Laurie LoCascio said at the time that funding decisions aim to “maximize the impact of public dollars spent.”
But this funding opportunity comes with a long list of DEI requirements, and semiconductor manufacturers must, for example, “develop an equity strategy” that describes “specific efforts to advance diversity, equity, inclusion, and accessibility.” ” will be forced to do so.
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This week, Rep. Jim Banks (R-Ind.), chairman of the House Anti-Wake Caucus, circulated a memo first obtained by Fox News Digital highlighting the requirements. In his memo, he criticized the Biden administration’s prioritization of DEI, arguing that it is hampering foreign investment in the U.S. and has already led to project delays.
“Attempting to make America stronger and richer while also making America more woke is self-defeating,” Banks told Fox News Digital in a statement. “A working America is a weak America.”
Congressman Jim Banks, Republican (Kevin Dietsch/Getty Images)
According to Banks’ memo, applicants for CHIPS for America funding will hire former prisoners, expand job opportunities for people with “limited English proficiency,” and hire more women in construction-related jobs. and must have a plan in place to “contract with a variety of suppliers.” “It’s owned by women and minorities.
Additionally, applicants for large grants must ensure “affordable, accessible, reliable, and high-quality” child care for all workers, including all construction workers, and that CHIPS and science Funds from the act would be available to build child care centers.
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And while the Commerce Department’s funding notice requires applicants to submit a climate and environmental justice plan that considers “climate-related risks that may occur over the lifetime of the facility,” Priority is given to applicants who are managed.
“If you look at the nature of the requirement itself, you can see that it’s a major hurdle,” Nicholson told Fox News Digital.
He noted that the need to hire diverse suppliers could be a major factor in delays in proposed semiconductor projects across the country. Nicholson added that separate funding provisions that strongly encourage applicants to hire union workers are also likely to add significant costs to manufacturers.
Secretary of Commerce Gina Raimondo will testify before the Senate Appropriations Subcommittee on Commerce, Judiciary, Science, and Related Agencies on February 1, 2022. (Via Sarah Silbiger/Pool, Reuters/File)
Last year, South Korea’s then-Minister of Trade, Industry and Energy, Lee Chang-yang, expressed concern about the “conditions attached to the law,” specifically mentioning the Biden administration’s childcare requirements and saying that investments in the U.S. semiconductor supply chain would be He added: At the time, the Korean Economic Newspaper reported that “the appeal is waning.”
In a statement to Fox News Digital, the White House slammed Banks’ memo and said CHIPS and the Science Act serve to attract new investment to the United States.
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“Thanks to President Biden’s investment policies in America, companies around the world are investing billions of dollars to build factories across the country, providing high-income jobs to veterans, rural communities, and Americans of all walks of life. “We are training them to get the job done,” White House press secretary Robin Patterson wrote.
“Shovels are in the ground, facilities are already under construction, and Americans are already feeling the benefits of the president’s economic policies. Congressman Jim Banks joins Communist Party of China to boost domestic manufacturing jobs.” It’s sad that he opposed the groundbreaking CHIPS and Science Act to preserve it.” ”
President Biden speaks at a groundbreaking ceremony for Intel’s new computer chip facility in New Albany, Ohio, on September 9, 2022. (AP Photo/Manuel Balce Seneta)
Since Biden signed the bill, the federal government has announced multiple non-binding preliminary agreements worth billions of dollars with semiconductor industry players. The latest such agreement — $8.5 billion in direct financing potential Several projects being developed by California-based tech company Intel were announced Wednesday.
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But some of the company’s ambitious plans to build up semiconductor production in the United States are facing significant delays. Intel abruptly halted construction on its $20 billion Ohio factory last month, and this week five suppliers announced plans to build a $20 billion factory in Arizona aimed at supporting the factory being developed by Intel and Taiwan Semiconductor Manufacturing Co. (TSMC). Construction of the facility has been postponed.
Intel declined to say whether its plans have been delayed due to the Biden administration’s demands, but said it is “in a position to meet our obligations.”
Nvidia chips pictured at headquarters in Santa Clara, California, on June 5, 2023. (Marlena Sloss/Bloomberg via Getty Images)
“We appreciate the support of the Biden administration, the Department of Commerce, and the entire U.S. government in our shared mission to strengthen the nation’s semiconductor industry,” Intel spokesman William Moss told Fox News Digital. “Intel is well-positioned to meet its obligations and intends to prudently comply with all reporting requirements and milestones established by the Department of Commerce.”
“Wafer fabrication sites typically take three to five years from groundbreaking to production, depending on business conditions and other factors,” he added.
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TSMC did not respond to requests for comment.
Collectively, semiconductors are essential to support a wide range of communications, scientific, medical, and energy technologies. However, China now dominates global supply chains, accounting for an estimated 31.4% of global final sales, according to research by Citigroup.
