Posted 2/20/2024, 10:00:00 AM
Biden Signs CHIPS Act to Boost Chips Industry, But Key Suppliers May Be Left Out
- Biden signed the CHIPS Act to boost domestic microchip industry, citing Michigan company Hemlock as an example of what he wants to support
- Hemlock makes a key material - polysilicon - used in 1/3 of all chips, but may not qualify for the law's $25B in tax breaks
- Hemlock and supporters argue the tax rules are too narrow, excluding crucial chip suppliers like them
- Opponents argue too many companies are angling for subsidies when the intent was to support chipmaking specifically
- Hemlock says without government support they can't expand production, risking supply chain drift to China which aims to compete in polysilicon