The Commerce Department will hold a public webinar on the agency’s proposed “guardrails” for recipients of Chips Act funding, which could restrict how recipients use the funding in certain countries and align the guardrails with export restrictions (see 2303210026 and 2303220010). The March 30 webinar will be hosted by the National Institute of Standards and Technology’s Chips Program Office, which will “review the national security measures included in the Chips and Science Act and the additional details and definitions outlined in the Notice of Proposed Rulemaking.” Participants must register. The presentation recording and transcript will be posted on the Chips for America website after the event.
CHIPS Act
The CHIPS and Science Act is a U.S. law signed by President Biden in August 2022. The act authorized approximately $280 billion in funding for domestic research and manufacturing of semiconductors. It included $39 billion to subsidize chip manufacturing in the U.S. and a 25% tax credit for the cost of manufacturing equipment. The bill provided $13 billion for semiconductor research and workforce training. It also invested $174 billion in public sector research in science and technology. The bill was intended to strengthen the resilience of American supply chains and to counter China.
The Commerce Department published a proposed rule in the Federal Register that seeks public comments on potential “guardrails” for recipients of Chips Act funding. Comments on the rule, which would also align those funding restrictions with certain export controls, are due May 22. Commerce released the rule earlier this week (see 2303210026).
The Commerce Department this week released proposed “guardrails” for recipients of Chips Act funding, which could restrict how the funding is used in certain countries and align the guardrails with export restrictions. The proposed rule would block funding recipients from pursuing certain chip investments in China and other “foreign countries of concern,” restrict them from participating in certain research or technology licensing efforts with those countries, prevent the funding from being provided to companies on the Entity List and more, Commerce said.
Former Rep. Ron Kind, D-Wis., has joined Arnold & Porter as a senior policy adviser and resident in the Legislative and Public Policy practice, the firm announced. In Congress, Kind served on the House Ways and Means Committee and its Subcommittees on Health and Trade, where he engaged on various issues including multiple free trade agreements, the CHIPS Act, and tax and pension reform legislation.
Ahead of a meeting of the "Three Amigos" -- the presidents of the U.S. and Mexico and the prime minister of Canada -- Jan. 9-10, business groups that advocate for North American integration said during a Jan. 6 webinar that they're hoping to see more evidence of nearshoring and using North American resources to diversify away from China.
Sens. Rob Portman, R-Ohio, and Chris Coons, D-Del, laid out parameters of a trade package they hope to get passed in the next three weeks in Congress.
Sen. Mark Warner, D-Va., one of the primary movers behind the Chips Act, told an audience that more domains need policymakers' attention so that they don't wake up to find that China has become dominant in an important emerging technology. He noted that before becoming a politician, he "was in the telecommunication space," and said that realizing that China is dominating 5G with two heavily subsidized champion companies was the "final wake-up call" that engagement and deeper trade with China is not the right way to go.
Sen. Rob Portman, R-Ohio, who is retiring from Congress at year's end, told an audience at the Center for Strategic and International Studies that he was disappointed there were no trade items in the Creating Helpful Incentives to Produce Semiconductors and Science (CHIPS) Act. "But I’m ready to negotiate a grand bargain on trade in this lame-duck session," he said in a video address Oct. 17. Portman was scheduled to participate in a roundtable of former U.S. trade representatives but was traveling overseas on an official congressional trip.
Trade groups that represent semiconductor manufacturers and customers lauded the Senate's passage of incentives for domestic manufacturing, while unions and a union-funded advocacy group both praised the bill and said trade provisions that were not included still need to pass.
The U.S. should enter into a free trade agreement with the government of Taiwan "by the end of next year," former Secretary of Defense Mark Esper said during a July 26 Atlantic Council webinar. The former secretary, now on the board of the think tank, went on to say that not only should the U.S. pursue an agreement with Taiwan, but that America should persuade its European allies to do the same, regardless of pushback from China.