News Trump admin renegotiating Chips Act contracts, needles China over lowly advanced chip output

[Admin]

U.S. Commerce Secretary Howard Lutnick tells the U.S. Senate that the White House is renegotiating with CHIPS Act recipients, hoping to get more investments from recipients.

Trump admin renegotiating Chips Act contracts, needles China over lowly advanced chip output : Read more

 

[ezst036]

Everybody was desperate to get government involvement into the business of chip making.

Now everybody is upset that government is involved in the business of chip making. Hold on now. This whole operation was your idea. You don't get to act all indignant now, that's not how this works.

Meanwhile the lobbyists are laughing at us all the way to the bank. It doesn't matter what we all have to suffer through in this process, the lobbyists got their bank already and aren't affected anymore until the next payola is ready to go and they can get theirs once more. Onward with the lobbyist gravy train.

Choo choo!

 

[blppt]

Everybody was desperate to get government involvement into the business of chip making.

That's not what is going on here though. What they are doing is threatening things can never be---significant chip manufacturing on shore at a reasonably higher digestible cost to the customer.

And THAT only works if you are consistent with your fiscal plans---think about it---you are a major chip manufacturer who primarily makes chips overseas. The only way you would transition to a significant amount of onshore manufacturing here is if you have a solid glimpse of what is going to happen 4-5 years down the road. Constant on/off tariff threats and implementation is chaos, and nobody is going to plan to build major plants here based on a whim---it takes years to build and get up to speed.

Unless you are SURE these tariffs are permanent and it makes fiscal sense to onshore manufacturing in the US, nobody is going to build here that wasn't already planning to do so.

The plants you are seeing now were approved and planned for in the first Trump admin and Biden admin. Heck, some even as far back as Obama.