Trump's victory ignites a race to complete the Chips Law agreements

The Biden Administration ran time to complete agreements under the Electronic Chips Act with companies such as “Intel” and “Samsung Electronics” with the goal of strengthening one of his most important initiatives before President -Skend Donald Trump entered the White House. The Ministry of Trade has already granted more than 90% of the grants worth $ 39 billion below 2022 chips and science law, a detailed law aimed at rebuilding the local disc industry, but so far it has announced only one binding agreement. The next two months are decisive for more than 20 companies are still in the negotiation phase. People who are familiar with the matter said that some of these companies, including ‘Taiwan Simonkik, manukt’ and ‘Global Foundres’, have terminated their negotiations and expect the final agreement to be announced soon. But other companies – such as “Intel”, “Samsung” and “Micron Technology” – are still working to resolve some fundamental details in their contracts, according to other people who asked not to reveal their identity because the talks are not disclosed. Officials have long tried to complete the largest possible number of transactions by the end of 2024, enabling the flow of money on companies that achieve specific achievements. Trump’s victory has now given the situation a stamp because the Biden team wants to isolate its initiatives on industrial policy of party conflicts. The chip industry businesses also want to avoid negotiating the terms of agreements with the new administration. Trump attacks the law of the Chips Act, which includes billions of dollars to loans and tax emissions of 25%, in addition to grants, and encourages companies to promise to spend about $ 400 billion to establish factories in the United States. The Democratic Administration believes that the program, which has been approved by the Republican and Democratic Partis, is one of its most important achievements, but the president chosen has recently attacked the law. Last month, Trump criticized the initiative and described it as “very bad” and indicated that the imposition of customs duties would be a better solution. After that, Republican Parliament speaker Mike Johnson said that his party would try to “reform” this law, in withdrawal of previous statements that the Republicans would probably seek to cancel it. Trump’s camp has not clarified its position on this issue since the election, although there is a general consensus between the pressure groups in the sector that the disk law will remain largely. However, it was the first Trump administration to use the company “Taiwan Simonkendic Manovactt as” the world leader in the manufacture of slides to build factories in the state of Arizona. The federal regulations will also be forced its second administration to spend the money on the disk law adopted by the US Congress, which includes the amount of $ 39 billion fully for direct grants until the end of the financial year 2026. A priority for national security says the two parties that the production of semiconductors locally is one of the priorities of National, especially in the light of the possibility of China’s. Core of the industry. The chips are a lifeline for the modern economy, which is essential blocks for all types of consumer and military technology and one of the tension points between Washington and Beijing. The Chips Act has widespread support for other Biden initiatives in the industrial policy. “Obviously, the election has not changed the basic geopolitical challenge with China,” said Sujay Shivakomar of the Center for Strategic and International Research in Washington. But Republicans may try to simply the disc law, which they are considering simply social priorities, such as the requirement for children’s care facilities or expectations that businesses with local unions consult and work to reduce the environmental impact of their factories. Republican assistant said that Republican employees in Congress are already making serious discussions about searching for these reforms within the framework of the budgetary compatibility next year, if the party controls the congressional councils. (Republicans have already acquired the majority in the Senate. As far as the House of Representatives is concerned, it has not yet been decided.) Bloomberg reported that Mike Johnson specifically studies the reduction of environmental requirements, which exceeds the current exemptions of permits. On the other hand, pressure groups in the sector are planning to push to increase tax credits at a time when the congress is preparing to hold decisive tax talks next year, people are familiar. Intel’s concern is the concern of companies that do not arise that Republican reforms have changed the support numbers they get, but that they will delay financing for a longer period, which is money that some managers in the sector already feel that it lasts longer. A senior US official said a number of projects met the initial criteria, which means the possibility of spending the first segment of the funds once the contracts are signed. For Intel, the talks are partly dependent on the such terms to change control, according to people who are familiar with the matter. These items explain what will happen if the company is separating manufacturing activities or being obtained completely or partially. This is a sensitive topic at a time when the electronic chips business faces horrific financial challenges. The Bloomberg Agency and other media reported that other semiconductors were either prepared or learned an offer to obtain ‘Intel’ or part of it. Gilsenger CEO promised to retain the company’s unit, and Intel said in a statement that he would continue to work with the Biden administration to complete the touch on the award. ‘Micron’ and ‘Samsung’ at the same time withstand ‘Micron’ the condition to join the ‘National Center for Semiconductor Technology’, a new research and development center set up under the Chips Act at a cost of $ 5 billion, other people said. This membership was one of the conditions for initial grants, and “Micron” is one of several companies now remembering. ‘Micron’ said in a statement that it continues to work closely with government officials to complete the touch on his incentive package. Then there is the company “Samsung”, which was afraid of the Biden administration officials last month with a disappointing financial report for which the company was apologized to in a rare incident. The troubled company did not make a significant progress before “TSMC” in the production of advanced chips. It has not yet announced an important client of new facilities in Texas. The discussions with “Samsung” were recently active on the Chips Law Award after the setback earlier this year, according to well -known people who said that the technical examination meetings between the company officials and the government were separated by a month at some point. Samsung did not respond to a request for comment. The Ministry of Trade refused to comment on the ongoing negotiations. Other outstanding issues are one of the other outstanding issues, an occupier called Davis Bacon, who determines the wages that prevail in the construction supported by the federal government. Companies also want to make clear the size of the business they can do with China. Last year, the Biden Administration issued restrictions to protect the national security that limits the amount of expansion allowed in the Asian state of the companies that have a chips grant, but there are specific details that will be resolved in contracts. The Biden Administration seeks to obtain promises from companies to spread as much money as possible before leaving the authority. This will generally protect companies from any changes, with the exception of the laws issued by Congress or matters of non -compliance with those with financing. During the Trump era, the Ministry of Trade may try to break the already signed federal contracts and negotiate them again, but his team does not have a desire to do so. But whatever it is, the Biden Administration officials realize that some of the final touch, including the actual exchange of most financing amounts, will be made by Trump officials. A spokesman for the Ministry of Trade said in a statement: “Our team implements this law, which has been approved by the two parties in accordance with the executive regulations,” adds that the ministry will announce more developments in the coming weeks. “