Harris Defends CHIPS Act Amid Trump Criticism
AInvestMonday, Nov 4, 2024 12:18 pm ET
1min read
GLW --
As the U.S. midterm elections approach, Vice President Kamala Harris has been touring the country to highlight the Biden administration's achievements, including the CHIPS and Science Act. The act, signed into law in August 2022, has already created over 115,000 jobs and is poised to significantly impact the U.S. semiconductor industry. However, former President Donald Trump has recently criticized the law, sparking a debate about its merits and drawbacks.


The CHIPS and Science Act allocates $54 billion to the semiconductor industry, aiming to boost domestic manufacturing and reduce U.S. dependence on foreign suppliers. The act has already supported massive expansions in swing states like Michigan and Arizona, fostering regional economic growth and job creation. Corning, a recipient of $325 million in CHIPS funding, nearly doubled its workforce to 3,000 people in Michigan, offering jobs that pay 40% above the regional median.


Vice President Harris' recent tour of a semiconductor plant in Michigan highlights the act's impact on manufacturing jobs and the economy. The visit comes as some Democrats urge Harris to focus more on the economy in the waning days of the campaign. The CHIPS Act's job creation aligns with the author's investment values, which emphasize risk management and sustainable economic policies.


Former President Trump has criticized the CHIPS Act, arguing that the subsidies went to "rich companies" and that he could have imposed tariffs to get more companies to build facilities in the United States. However, the CHIPS Act's job creation thus far outpaces Trump's actual job creation record during his presidency. In 2016, Trump promised to create 25 million new jobs in his first term, but the U.S. economy added only 6.6 million jobs during his four years in office.

The CHIPS Act's focus on domestic manufacturing addresses trade imbalances and geopolitical concerns, aligning with the author's investment values. By investing in the semiconductor industry, the act aims to reduce U.S. dependence on foreign suppliers, predominantly from China, South Korea, and Taiwan. This shift in production can help mitigate the U.S. trade deficit and foster job creation and economic growth.

In conclusion, the CHIPS and Science Act has already made a significant impact on the U.S. semiconductor industry and the economy. Despite former President Trump's criticism, the act's job creation and focus on domestic manufacturing align with the author's investment values, which prioritize risk management, sustainable economic policies, and a balanced approach to global trade. As the midterm elections approach, the CHIPS Act's impact on the economy will likely continue to be a topic of debate among voters and political figures alike.
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