The 2 states that may profit probably the most from the CHIPS Act, Arizona and Ohio, went for Trump, and his vp, JD Vance, is from Ohio. One would determine the Trump administration gained’t penalize their loyalty.
“I gotta think about, given the amount of cash that may go into these communities and the variety of jobs that [it would] create, that the Republicans would push again and say, ‘Hey, wait a minute. This cash is already spent. Go away it alone. We will’t take that again from our constituencies,’” says Jack Gold, principal analyst with J.Gold Associates consultancy.
One other subject is Trump’s recommended answer: tariffs.
Gold notes that tariffs are a penalty, whereas the CHIPS Act is an incentive. Incentives, he says, virtually all the time work higher than penalties in getting issues performed and getting individuals (and corporations) to do what you need them to do. It could take a bit longer, nevertheless it’s simpler and sustainable.
“He thinks the best way to get everybody to [build fabs in America] is that if he places a 20% tariff on chips, then everybody will run to America and construct the crops right here. That’s not going to occur,” Gold notes.
Gelsinger: The place’s my cash?
In the meantime, Intel awaits its CHIPS Act disbursements.
