4 ms·

Rebuilding our microchip manufacturing base is critical part of US national defense. Why in the world would Donald Trump and Speaker Mike Johnson want to repeal

Rebuilding our microchip manufacturing base is critical part of US national defense. Why in the world would Donald Trump and Speaker Mike Johnson want to repeal the CHIPS act? https://www.noahpinion.blog/p/why-on-earth-does-trump-want-to-cancel https://www.noahpinion.blog/p/why-on-earth-does-trump-want-t...

jonnycomputer 2y ago
China has a history of buying out its critics, and I do not doubt for a second that Donald Trump is for sale (notice how he changed his tune on TikTok?)
- kernal 2y ago
  [flagged]
- wavefunction 2y ago
  He changed his tune on electric vehicles after Musk started backing him.
t-3 2y ago
There's been many complaints about DEI requirements in the CHIPS Act. Given that DEI is a favorite right-wing talking point, amendment or repeal+replace might be likely, but I doubt it would be scrapped altogether.
- cjbgkagh 2y ago
  [flagged]
jerlam 2y ago
It's associated with a member of the opposing party, so it must be opposed. Especially since it has a chance to be successful. Similar situation with the Affordable Care Act (aka Obamacare) - it was opposed not on its merits, but because it was from the opposing side.
- nickff 2y ago
  The Affordable Care Act came with a lot of baggage (as similar plans had been advocated for decades by various proponents), and President Obama was arrogant and dismissive of any need for Republican buy-in (telling them they could take a back seat). CHIPS seems much less divisive, though it seems stalled (at least based on recent statements by Intel and other CEOs).
  - throw0101d 2y ago
    > […] and President Obama was arrogant and dismissive of any need for Republican buy-in (telling them they could take a back seat). That is not accurate: > Not only were Republican senators deeply involved in the process up until its conclusion, but it's a cinch that the ACA might have become law months earlier if the Democrats, hoping for a bipartisan bill, hadn't spent enormous time and effort wooing GOP senators — only to find themselves gulled by false promises of cooperation. And unlike Majority Leader Mitch McConnell's semi-secret proceedings that involved only a handful of trusted colleagues, Obamacare, until the very end of the process, was open to public scrutiny. * https://www.usatoday.com/story/opinion/2017/08/01/set-health-record-straight-republicans-helped-craft-obamacare-ross-baker-column/523952001/ https://www.usatoday.com/story/opinion/2017/08/01/set-health...
    - nickff 2y ago
      President Obama literally said the Republicans had to sit in the back seat: https://www.c-span.org/video/?c4748375/user-clip-obama-tells-republicans-you-gotta-back-seat https://www.c-span.org/video/?c4748375/user-clip-obama-tells...
      - Sabinus 2y ago
        "If you want, you can ride with us, but you gotta sit in the back seat." As in, "we have a majority so we drive the political clown-car. "
      - throw0101d 2y ago
        Entire transcript of the clip: > We feel a tap on our shoulder and we look back, and who is it? It's the Republicans. And they say "Huh, excuse me, we'd like the keys back." And we have to tell them "I'm sorry, you can't have the keys back if you don't know how to drive". If you want you can ride with us but you have to ride in the back seat. Further context: Oct. 22, 2010, in Las Vegas on behalf of Sen. Harry Reid's re-election campaign. As a sibling comment notes: the Democrats had the majority at the time and were in charge of setting the agenda ("had the keys"). Further, Obama was willing to give the GOP a (figurative) ride if they wanted and were heading in the same direction.
reynard_le_faux 2y ago
Trump didn’t seem to disagree with the premise just the funding. His argument is that the US shouldn’t be funding it. His strategy is to put tariffs on chip imports and foreign chip manufacturers would have to build US based plants on their own dime.
- newprint 2y ago
  Lol, yeah. They will not do that.
- throw0101a 2y ago
  > His strategy is to put tariffs on chip imports and foreign chip manufacturers would have to build US based plants on their own dime. The counter-argument (FWIW): > Tariffs are paid by the importer and not the exporter. The Semiconductor Industry Association (SIA) claims that tariffs would not cause fabs to be built in the US, due to the cost of the factories, which can run from $18bn to $27bn. > "No tariff amount will equal the costs of ripping apart these investments and efficient supply chains that have enabled current US industry leadership," SIA said. > It added: "Moreover, chip tariffs will drive away manufacturing in advanced sectors that rely on semiconductor technology, such as aerospace, AI, robotics, next-generation networks, and autonomous vehicles. If the cost of key inputs like semiconductors is too high, tech manufacturers will relocate out of the US, costing jobs and further eroding US manufacturing and technological competitiveness." * https://www.datacenterdynamics.com/en/news/trump-bashes-chips-act-all-you-had-to-do-is-charge-them-tariffs/ https://www.datacenterdynamics.com/en/news/trump-bashes-chip... Foreign chipmakers would not pay the tariff (contrary to what Trump thinks) but their US customers, and what incentive to the foreign chipmakers to make changes? They're getting the same money and it's not costing them a dime. And where else are US businesses going to go for the product?
  - thehappypm 2y ago
    Even if the exporters are not directly paying the tariffs, their chips will cost consumers more, reducing the demand. So no; they’re not getting the same money.
jimbob45 2y ago
Surely HN of all spaces would understand why giving free money to Intel is a massive waste? Also if they genuinely need the money, they should be offering ownership in return.
- dylan604 2y ago
  Yes, we should be giving that money to Boeing instead!
  - the5avage 2y ago
    That is not fair. They did not actively kill hundreds of people. They just waste some energy on suboptimal chips and business decisions.
- vel0city 2y ago
  Surely HN of all spaces would understand there are far more chip manufacturers than just Intel.
  - deleted 2y ago
    [deleted]
- the5avage 2y ago
  Do you have some secret intel? They make the best chips in the USA.
  - astrange 2y ago
    TSMC makes the best chips in the USA now that they've started production.
ChrisRR 2y ago
The same reason he does half of the insane shit he does. Because it serves his own interests He doesn't want to actually improve america, he just wants fox news to pay attention to him 24 hours a day

jonnycomputer 2y ago

China has a history of buying out its critics, and I do not doubt for a second that Donald Trump is for sale (notice how he changed his tune on TikTok?)

kernal 2y ago
[flagged]
wavefunction 2y ago
He changed his tune on electric vehicles after Musk started backing him.

t-3 2y ago

There's been many complaints about DEI requirements in the CHIPS Act. Given that DEI is a favorite right-wing talking point, amendment or repeal+replace might be likely, but I doubt it would be scrapped altogether.

cjbgkagh 2y ago
[flagged]

jerlam 2y ago

It's associated with a member of the opposing party, so it must be opposed. Especially since it has a chance to be successful. Similar situation with the Affordable Care Act (aka Obamacare) - it was opposed not on its merits, but because it was from the opposing side.

nickff 2y ago
The Affordable Care Act came with a lot of baggage (as similar plans had been advocated for decades by various proponents), and President Obama was arrogant and dismissive of any need for Republican buy-in (telling them they could take a back seat). CHIPS seems much less divisive, though it seems stalled (at least based on recent statements by Intel and other CEOs).
- throw0101d 2y ago
  > […] and President Obama was arrogant and dismissive of any need for Republican buy-in (telling them they could take a back seat). That is not accurate: > Not only were Republican senators deeply involved in the process up until its conclusion, but it's a cinch that the ACA might have become law months earlier if the Democrats, hoping for a bipartisan bill, hadn't spent enormous time and effort wooing GOP senators — only to find themselves gulled by false promises of cooperation. And unlike Majority Leader Mitch McConnell's semi-secret proceedings that involved only a handful of trusted colleagues, Obamacare, until the very end of the process, was open to public scrutiny. * https://www.usatoday.com/story/opinion/2017/08/01/set-health-record-straight-republicans-helped-craft-obamacare-ross-baker-column/523952001/ https://www.usatoday.com/story/opinion/2017/08/01/set-health...
  - nickff 2y ago
    President Obama literally said the Republicans had to sit in the back seat: https://www.c-span.org/video/?c4748375/user-clip-obama-tells-republicans-you-gotta-back-seat https://www.c-span.org/video/?c4748375/user-clip-obama-tells...
    - Sabinus 2y ago
      "If you want, you can ride with us, but you gotta sit in the back seat." As in, "we have a majority so we drive the political clown-car. "
    - throw0101d 2y ago
      Entire transcript of the clip: > We feel a tap on our shoulder and we look back, and who is it? It's the Republicans. And they say "Huh, excuse me, we'd like the keys back." And we have to tell them "I'm sorry, you can't have the keys back if you don't know how to drive". If you want you can ride with us but you have to ride in the back seat. Further context: Oct. 22, 2010, in Las Vegas on behalf of Sen. Harry Reid's re-election campaign. As a sibling comment notes: the Democrats had the majority at the time and were in charge of setting the agenda ("had the keys"). Further, Obama was willing to give the GOP a (figurative) ride if they wanted and were heading in the same direction.

reynard_le_faux 2y ago

Trump didn’t seem to disagree with the premise just the funding. His argument is that the US shouldn’t be funding it. His strategy is to put tariffs on chip imports and foreign chip manufacturers would have to build US based plants on their own dime.

newprint 2y ago
Lol, yeah. They will not do that.
throw0101a 2y ago
> His strategy is to put tariffs on chip imports and foreign chip manufacturers would have to build US based plants on their own dime. The counter-argument (FWIW): > Tariffs are paid by the importer and not the exporter. The Semiconductor Industry Association (SIA) claims that tariffs would not cause fabs to be built in the US, due to the cost of the factories, which can run from $18bn to $27bn. > "No tariff amount will equal the costs of ripping apart these investments and efficient supply chains that have enabled current US industry leadership," SIA said. > It added: "Moreover, chip tariffs will drive away manufacturing in advanced sectors that rely on semiconductor technology, such as aerospace, AI, robotics, next-generation networks, and autonomous vehicles. If the cost of key inputs like semiconductors is too high, tech manufacturers will relocate out of the US, costing jobs and further eroding US manufacturing and technological competitiveness." * https://www.datacenterdynamics.com/en/news/trump-bashes-chips-act-all-you-had-to-do-is-charge-them-tariffs/ https://www.datacenterdynamics.com/en/news/trump-bashes-chip... Foreign chipmakers would not pay the tariff (contrary to what Trump thinks) but their US customers, and what incentive to the foreign chipmakers to make changes? They're getting the same money and it's not costing them a dime. And where else are US businesses going to go for the product?
- thehappypm 2y ago
  Even if the exporters are not directly paying the tariffs, their chips will cost consumers more, reducing the demand. So no; they’re not getting the same money.

jimbob45 2y ago

Surely HN of all spaces would understand why giving free money to Intel is a massive waste? Also if they genuinely need the money, they should be offering ownership in return.

dylan604 2y ago
Yes, we should be giving that money to Boeing instead!
- the5avage 2y ago
  That is not fair. They did not actively kill hundreds of people. They just waste some energy on suboptimal chips and business decisions.
vel0city 2y ago
Surely HN of all spaces would understand there are far more chip manufacturers than just Intel.
- deleted 2y ago
  [deleted]
the5avage 2y ago
Do you have some secret intel? They make the best chips in the USA.
- astrange 2y ago
  TSMC makes the best chips in the USA now that they've started production.

ChrisRR 2y ago

The same reason he does half of the insane shit he does. Because it serves his own interests He doesn't want to actually improve america, he just wants fox news to pay attention to him 24 hours a day