Time is running out. The Biden administration is in a mad rush to finalize billions in CHIPS Act deals before Trump takes office. With $39 billion in funding at stake, there is no room for delay.
The CHIPS Act, signed into law in 2022, was supposed to bring chip production home. The goal? Secure supply chains and reduce dependence on Taiwan for advanced semiconductors. It’s a big problem for American manufacturing. But there’s a catch. Although 90% of the money has been allocated, most of it is not yet locked. Only two deals, worth $6.6 billion, have been fully completed, according to the Commerce Department.
Don’t miss:
Commerce Secretary Gina Raimondo pledged to allocate every dollar by the end of the year. But progress? It’s been slow. And patience is running out. “We are disappointed with how long and how slow the funding delivery has been,” said Intel CEO Pat Gelsinger, as reported by Bloomberg. He’s frustrated. The process has dragged on for more than 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 be rolled out before the end of the year. But a lot still needs to be arranged. Intel, the largest potential recipient, is still negotiating terms to unlock its stake.
Newly elected President Donald Trump, meanwhile, is not a fan of the CHIPS Act. He’s been vocal. He thinks tariffs are a better way to get companies to make chips here. On a podcast with Joe Rogan, he called tariffs the smarter move. His team may step up a gear when he takes office. But the thing is, once a CHIPS Act deal is done, it’s hard to undo. They are legally binding unless companies do not adhere to the agreement.
Trending: This Jeff Bezos-backed startup lets you do just that Become a landlord in just 10 minutes, with minimum investments starting at $100 for properties like the Byer House from Stranger Things.
Analysts like Jeff Koch say Trump could slow things down even if he doesn’t repeal the CHIPS Act. “This had the added benefit of pushing the Biden administration to cut red tape and disburse CHIPS Act funds while still in office,” Koch told Business Insider.
There is 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 delay or rewrite the rules, adding more uncertainty to a complicated process.
And it’s not just about securing financing. There are benchmarks. Companies like Intel need clear conditions to access the money. Another layer of bureaucracy slows things down. For Biden, it’s a race against time to advance the vision of the CHIPS Act before Trump’s team takes over.
The stakes are high. America needs these funds to compete globally. Chips power everything from smartphones to cars, so falling behind is not an option. All eyes are on whether Biden can get this done in time. The pressure is on and there is no room for missteps.
Read next:
Next: Transform your trading with Benzinga Edge’s unique market trading ideas and tools. Click now to access unique insights which can give you an edge in today’s competitive market.
Want the latest stock analysis from Benzinga?
This article ‘We are disappointed.’ Intel CEO Criticizes Delays as Biden Pushes $6.6 Billion to TSMC originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
