The CHIPS Act: Far From Perfect, but Still Very Good

If we’re ever going to achieve supply chain security, the United States will need more influence in the semiconductor industry. The bill is a good start.

By
91

Editorial note: Between the drafting of this newsletter and its publication, House Republican leadership has reportedly decided to “whip” against the CHIPS Act in response to Sen. Joe Manchin’s surprise reconciliation agreement with Sen. Chuck Schumer. I will not comment on the politics, but it would be nice if Congress could debate a serious issue like American national security and our technological competition with China on the merits, instead of turning it into yet another “shirts” vs “skins” game. Unfortunately, it seems that is too much to ask. 

Hello and happy Thursday.  

The U.S. Senate has passed a $250 billion plan to boost American semiconductor manufacturing and the House of Representatives is scheduled to vote on this bill later today. Thoughtful people are divided over the bill, including conservatives who share concerns about China’s rise and our own nation’s ability to produce technologies that are essential for economic strength and national security. The House’s Republican Study Committee (RSC) has issued a memo laying out its objections to the bill and Heritage Action for America (HAFA)—the political action arm of the Heritage Foundation—is demanding that conservatives who want to remain in its good graces must vote “no” on the legislation. 

I disagree and would like to briefly explain how, despite some of my own concerns, I’ve come to believe the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act meaningfully advances U.S. interests.  

Keep reading with a free account
Create a free Dispatch account to keep reading Get Started ALREADY HAVE AN ACCOUNT? SIGN IN
91
By
Comments (91)
Join The Dispatch to participate in the comments.
 
  1. Avatar photo
    Dave Carson

    I've thought for years the President of the United States should wake up every morning asking himself "How can I screw the Chicoms today?" Hitting them in the chips is a good start.

    Collapse
  2. Mathew A

    Agreed, pass the bill, if there is more support we can always amend later, but if we don't get this passed I think we will kick ourselves

    Collapse
  3. Avatar photo
    Anne W (Raw5254)

    Thanks for the clear explanation. I know it has passed since you wrote this, and I’m glad to see us doing something even if it’s not “perfect.”

    Collapse
  4. Avatar photo
    Brian

    Good analysis. If China is against it, that says a lot about its potential impact in improving our position in the industry.

    Collapse
  5. Cole

    I’m dumbfounded that we allow American companies to invest in China and manufacture in China. And why the hell would we let them buy up American companies, land, etc. and right next to our military bases and nuclear silos. Someone is guilty of treason.

    Collapse
  6. Jack Zentrist

    I’ve not heard that expression, skins vs shirts, in about half a century. And yes, this is yet another reason people like me begin to ask questions about Liberalism itself.

    Collapse
  7. Avatar photo
    O.M.G. calling from Vaudeville, AZ

    I so very much dig and you admire your expertise Klon. But the more I read you, I, respectfully, as much as you most definitely do not share my sentiments, will reiterate you are looking through the glass the wrong way. Ever word you write and report about Chairman Mao, I mean Xi, only convinces Churchill, I mean me, that one gangster and genocidal mass murderer and existential threat not only to Taiwan, but planet earth, has no right to life, liberty and the pursuit of happiness. And if we the people of the U.S. only had a leader with brains and balls to declare the Chinese Communist Corona Party the new and improved evil empire that has to be erased from the face of the earth amd make like W. and declare are either with us or against. Chinese peoples yearning to breath free we are with and we the people of the still free western world are with you. DEATH TO XI. That should be the western worlds united plank. That is how to protect Taiwan, by stopping the breathing of its existential threats right fing now, like the made in China man made virus that murdered millions and disrupted the worlds economy beyond belief. Thanks for taking my rant Dispatch. Gotta run on. Peace through superior mental firepower

    Collapse
  8. Linda Murphy

    Many thanks for a clear presentation.

    Collapse
  9. Avatar photo
    David Chen

    I am surprised at the recent slew of likely legislative 'wins' the current admin seems to have gotten:
    - codifying gay marriage
    - the new deficit/climate/whatever bill with Manchin
    - CHIPS act
    - Uyghur act

    I absolutely loathe Biden, but this is at least... something.

    Collapse
  10. Avatar photo
    Victor Clairmont

    “Editorial note: Between the drafting of this newsletter and its publication, House Republican leadership has reportedly decided to “whip” against the CHIPS Act in response to Sen. Joe Manchin’s surprise reconciliation agreement with Sen. Chuck Schumer. I will not comment on the politics, but it would be nice if Congress could debate a serious issue like American national security and our technological competition with China on the merits, instead of turning it into yet another “shirts” vs “skins” game. Unfortunately, it seems that…”

    Bwhahahah Mr Klon…

    America is doomed!

    Collapse
Load More