Time’s running out for the Biden administration, and the panic is palpable. With $39 billion in CHIPS Act funding on the line, the White House is frantically trying to finalize deals before President-elect Donald Trump steps into office and introduces some much-needed common sense to this bloated boondoggle.
The CHIPS Act, signed into law in 2022, was supposed to revive American semiconductor manufacturing and reduce reliance on Taiwan. Sounds good, right? But in typical Biden fashion, it’s been a bureaucratic slog. Commerce Secretary Gina Raimondo promised to allocate every dollar before year’s end, yet only $6.6 billion—just 17% of the funds—has actually been finalized. Even Intel CEO Pat Gelsinger, whose company stands to gain billions, has had enough. “We are disappointed by how long and how slow the dispensing of funds has been,” Gelsinger lamented, as reported by Bloomberg.
The clock is ticking, and Biden’s team knows it. They’ve scrambled to announce deals, including a $6.6 billion agreement with Taiwan Semiconductor Manufacturing Company (TSMC), hoping to lock in at least $1 billion before Trump takes office. But here’s the problem: the CHIPS Act isn’t the slam dunk Democrats claim. Trump himself has criticized the act, calling it a convoluted mess that wastes taxpayer dollars. On a podcast with Joe Rogan, Trump argued that tariffs—not handouts—are the smarter way to bring chip manufacturing back to U.S. soil.
And Trump’s right. The CHIPS Act is another classic example of Democrats overcomplicating things with bureaucracy and red tape. While Biden’s administration fumbles to finalize deals, the companies involved are stuck in limbo, negotiating terms and benchmarks for access to funds. Meanwhile, the administration is racing to lock these deals down, knowing Trump might hit the brakes—or even rewrite the rules—once he takes office.
Here’s the kicker: these deals are legally binding. Once signed, they’re tough to undo unless companies fail to meet their obligations. So, Biden’s last-minute scramble isn’t just about optics—it’s about tying Trump’s hands and forcing the next administration to live with these half-baked agreements.
The stakes couldn’t be higher. Semiconductors power everything from smartphones to cars, and America can’t afford to fall behind. But under Biden, this process has been a masterclass in how not to govern. Trump’s America First approach, prioritizing tariffs and streamlined policies, is exactly what the industry needs to thrive. While Biden flails, Trump will deliver results, cutting through the nonsense and ensuring American manufacturing regains its competitive edge.
Comments are closed.