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Trending On The Right

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US: Media call Biden’s COVID White House video ‘smartly done’ after attacking Trump’s as ‘deranged’ in 2020 (Fox News)

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Top Photo Credit: NVIDIA Corp CC 2.0
On Tuesday the Senate advanced the CHIPS Act, which would provide $50 billion in subsidies to bolster the manufacturing of semiconductors in the US. This comes amid an ongoing chip shortage and concerns over the nation’s dependence on Chinese chips, as well as those made in Taiwan.

News Coverage from the Right: Republicans split on major China bill, as legislation barrels toward passage (Fox News)

News Coverage from the Left: US would face a 'deep and immediate recession' if made-in-Taiwan chips were cut off, says commerce secretary (Business Insider)

From The Flag: There’s some additional controversy as House Speaker Nancy Pelosi’s husband purchased stock in US chipmaker NVIDIA prior to the Senate’s procedural vote, something we covered last Sunday in The Street Sheet.

Today we're examining the merits of the legislation itself. If the bill does get passed and signed into law, we'll be following the trajectory of NVIDIA's stock to potentially discuss the debate surrounding Congress, their family members, and stock trades.

Here’s more from both sides.

• This legislation may not go far enough because the Chinese government is aggressively pouring money into its semiconductor industry.
• Other nations around the world are racing to support their chip makers and the US should do the same thing.
• When you consider the fact the world’s biggest chipmaker Intel is already based in the US, this legislation makes little sense.

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“Don’t stop at the Chips Act, Congress” Editorial Board, Washington Post: “The thinking is that the Chips Act is urgent — because unless it passes quickly, companies impatient for the subsidies it would provide will build their facilities in countries where incentives are already in place. And with Taiwan responsible for the bulk of advanced chips today, supporters are right that domestic production is the surest way to prevent future supply shocks and protect national security. The problem is, the Chips Act has never been the only way, or even the best way, to achieve that aim. Lawmakers have attached some strings to the money the bill would dole out, but there’s still a risk that the funds would largely benefit shareholders rather than taxpayers. There’s also a risk that no matter how well the United States spends its dollars, it can’t keep up with China — which is used to funneling far more government resources into industry.”

“Stop dithering on $52 billion CHIPS Act” Editorial Boards, Mercury News and East Bay Times: “Get your act together, Congress. The United States has a chip shortage that threatens its economic future. China is committing $150 billion to expand its semiconductor industry. Taiwan’s chipmakers are investing $120 billion to strengthen their grip on the global market. Japan has provided subsidies with the intention of tripling its chip production by 2030. South Korea has plans to spend $450 billion over the next 10 years to stay ahead of its foreign competitors. Even the European Union has committed to $47 billion to chip production in an effort to become less dependent on foreign firms. The United States? Despite broad bipartisan support for the CHIPS Act, the legislation providing $52 billion for American chipmakers, continues to languish in Congress. Every day that the CHIPS Act fails to pass is another day in which the United States falls further behind in the chips war.”

One more opinion piece from the Left: Why is the US about to give away $52bn to corporations like Intel? Robert Reich, The Guardian

• Instead of throwing money at the semiconductor industry we should be focused on making the US a more pro-business environment overall.
• Chips are vital to nearly every aspect of the economy and important things like healthcare, so the US can’t afford to not invest in the sector.
• Because of how important chips are to the US military and the electrical grid, securing their production is essential for national security.

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“CHIPS Act distracts from bigger China challenge” Weifeng Zhong and Christine McDaniel, Washington Examiner: “​​Socialist countries, including China, regularly allocate taxpayer funds to priority sectors, and their citizens pay dearly for underwhelming results. Subsidizing research and development sometimes can work, but U.S. attempts at industrial policy have mostly failed. … And then what happens when fluctuating economic conditions lead to a glut of chips? The worst of the pandemic-related supply chain disruptions appear behind us. … As these plants ramp up production, one can imagine a flurry of complaints about continuing, low-priced foreign competition, legitimate or otherwise. Having already paid upfront, the government will be tempted to protect the new plants — at the expense of U.S. consumers and taxpayers. The computer chip problem will likely resolve over time. The underlying challenges posed by China are here to stay. Instead of giving away $52 billion, why not address why a multibillion-dollar chipmaker doesn't choose America to begin with?”

“When the Chips Are Down, Congress Should Support the Semiconductor Industry” Jim Farley and Pat Gelsinger, Wall Street Journal Op-ed: “The pandemic supply-chain shock exposed a problem that had been mounting for years. The US share of global chip manufacturing has declined to 12% from 37% in 1990. South Korea and Taiwan, notably, have spent years actively investing in their own chip manufacturing, creating an uneven playing field for US chip makers … The global chip shortage not only endangers our access to essential technology. It also risks eating into Americans’ wages in the form of reduced hours and higher consumer prices. Fortunately, a solution is within reach. …funding the Chips Act, which would provide $52.2 billion in grants to the US semiconductor industry. In addition to boosting production of leading-edge and legacy chips, the act would help level the playing field with global competitors. Without intervention, shortages of chips—including the legacy chips widely used in the auto, medical-device and defense industries—are expected to persist.”

One more opinion piece from the Right: Onshoring Semiconductor Capacity Is Crucial to National Security Zachary A. Collier, Real Clear Politics

Polling released last year overwhelmingly showed that Americans view China as a competitor rather than a trade partner.

Just under 90% agreed with that sentiment, while 48% said the US should make it a top foreign policy priority to limit Chinese power and influence. That latter number checked in at 32% in 2018 (Pew Research Center).

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Flag Poll: Do you support laws that aim to make US businesses more competitive with China? Click here to share your thoughts.

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On July 22, 1862, President Abraham Lincoln informs his chief advisors and cabinet that he will issue a proclamation to free enslaved people, but adds that he will wait until the Union Army has achieved a substantial military victory to make the announcement. Above is the painting "First Reading of the Emancipation Proclamation of President Lincoln," featuring the president and his cabinet.

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