Speaker Johnson's Proposal to Repeal Bipartisan Chip Law
In a bold move that has sent shockwaves through the tech industry, Speaker Kevin McCarthy (R-CA) has unveiled a proposal to repeal the recently passed Bipartisan Chip Law. The law, which was signed by President Biden in August 2022, provides billions of dollars in subsidies to semiconductor manufacturers to boost domestic production of chips.
McCarthy's proposal, which is likely to face an uphill battle in the Senate, argues that the law is unnecessary and wasteful. He claims that the private sector will invest in chip manufacturing without government subsidies.
Supporters of the Chip Law, including the Biden administration and many tech executives, argue that it is essential to ensure the United States' competitiveness in the global semiconductor market. They warn that repealing the law would send the wrong message to businesses and could lead to a loss of jobs.
Trump's Response
Former President Donald Trump has weighed in on the debate, criticizing McCarthy's proposal as "crazy" and "a gift to China." Trump, who played a key role in the passage of the Chip Law, has been an outspoken advocate for domestic semiconductor manufacturing.
Trump has also taken aim at McCarthy personally, calling him "very weak" and "too afraid of the radical left." He has suggested that McCarthy is more interested in pleasing donors than in protecting American interests.
It remains to be seen whether McCarthy's proposal will gain traction in Congress. However, Trump's vocal opposition and the support of the Biden administration make it unlikely that the Chip Law will be repealed outright.