Biden’s Semiconductor Plan Flexes the Power of the Federal Government (NYTimes)

Chip makers seeking subsidies will need to ensure
affordable child care for their workers, limit stock
buybacks and share some profits with the government.

The new requirements represent an aggressive attempt
by the federal government to bend the behavior of corporations
to accomplish its objectives.

WASHINGTON — Semiconductor manufacturers seeking a slice of nearly $40 billion in new federal subsidies will need to ensure affordable child care for their workers, limit stock buybacks and share certain excess profits with the government, the Biden
administration will announce on Tuesday.

The new requirements represent an aggressive attempt by the federal government to bend the behavior of corporate America to accomplish its economic and national security objectives. As the Biden administration makes the nation’s first big foray into
industrial policy in decades, officials are also using the opportunity to advance policies championed by liberals that seek to empower workers.

While the moves would advance some of the left-behind portions of the president’s agenda, they could also set a fraught precedent for attaching policy strings to federal funding.

Last year, a bipartisan group of lawmakers passed the CHIPS Act, which devoted $52 billion to expanding U.S. semiconductor manufacturing and research, in hopes of making the nation less reliant on foreign suppliers for critical chips that power computers,
household appliances, cars and more. The prospect of accessing those funds has already enticed domestic and foreign-owned chip makers to announce plans for or begin construction on new projects in Arizona, Texas, Ohio, New York and other states.

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