CHIPS Act May Face Opposition From Within Semiconductor Industry

Senate Majority Leader Chuck Schumer's (D-NY) plans to bring the semiconductor CHIPS Act to the Senate floor tomorrow may be complicated by opposition from the tech industry.

• The CHIPS Act, which has already been stripped of USICA, the legislative package which sought to increase competitiveness with China and boost domestic science and innovation, is now receiving criticism from those who believe CHIPS unfairly benefits a few tech giants, rather than boosting the sector.
• Reuters has reported that a number of semiconductor firms are considering opposing the bill “if the final language of the legislation awaiting a vote in the Senate disproportionately benefits manufacturers like Intel.”
• A source at a company debating opposition to the bill told Reuters: "You have Intel that might get $20 billion with CHIPS Act plus $5 billion or $10 billion under the FABS Act. So $30 billion goes to your direct competitor, and you don't get a penny? That's going to cause problems in the market.”
• A second source at another company said: "It's going to benefit just a few companies."
• Schumer is also facing lobbying from within the industry from companies trying to block items within the bill which may restrict operations in China.
• Politico reports that Intel has lobbied for relaxation on China constraints. A Intel spokesperson said: “Intel and many companies in our industry have come together with our trade association to provide input to policymakers in order to ensure that we have the best legislation possible and don’t inadvertently undermine the global competitiveness of companies that receive CHIPS funds.”