TL;DR
Trump’s push to repeal the Chips Act could cripple US semiconductor production, jeopardizing economic and national security for a short-term political win. It’s a gamble with potentially devastating consequences.
Story
Trump Wants to Kill the Chips Act: Déjà Vu All Over Again?
Remember 2008? Subprime mortgages, bundled and sold as safe investments? It all collapsed like a house of cards. Now, imagine a similar scenario brewing in the tech world, thanks to a potential policy U-turn.
Trump is calling for an end to the $52 billion Chips Act, a bipartisan effort to boost US semiconductor production. He sees it as wasteful spending, preferring tariffs instead. But this isn’t just about budgets; it’s about a dangerous gamble with the future of American technology and the economy.
‣ Chips Act: Government funding to encourage chip manufacturing in the US.
The Chips Act brought over $400 billion in investments from giants like TSMC and Intel. These companies bet big on the promise of government support. Now, that promise is on shaky ground. If the act is repealed, these projects could stall, leaving the US more reliant on foreign chipmakers.
‣ TSMC: Taiwan Semiconductor Manufacturing Company, a leading global chipmaker. ‣ Intel: A major US semiconductor company.
This move isn’t just bad for business; it’s bad for national security. Chips power everything from smartphones to fighter jets. Dependence on foreign suppliers makes the US vulnerable. Trump claims tariffs will solve this, but tariffs alone won’t magically create a domestic chip industry. They’ll just raise prices and hurt consumers.
The real kicker? Trump claims credit for TSMC’s US investments, even though they began under his administration and expanded under Biden. He’s taking credit for the very program he’s trying to destroy.
This whole situation screams short-sightedness. Like a gambler chasing a quick win, Trump is risking long-term stability for a fleeting political victory. And who loses? The American people, their jobs, and their future.
This isn’t just about chips; it’s about the kind of country we want to be. Do we want to be a leader in innovation, or a follower dependent on others? The answer lies in the choices we make today.
Advice
Keep an eye on this story. If the Chips Act falls, expect a ripple effect across the tech sector and beyond. Diversify your investments and prepare for a bumpy ride.
Source
https://www.reddit.com/r/stocks/comments/1j437g9/trump_calls_for_end_to_52_billion_chips_act/