Trump Plan Salvages Chips Act that he promised to kill
While chip makers are waiting for more clarity, Lutnick has suggested that Trump – who campaigned in killing the chips act – found a way to save the legislation that Joe Biden considered his lasting inheritance. It may seem possible that the plan came into existence after Trump realized how difficult it would be to tidy the legislation completely, with fairs already completed (but most not paid).
“The Biden administration literally gave Intel free money and gave TSMC free money, and all these companies that just gave the money for free, and Donald Trump made it to say:” Hey, we want equity for the money. If we want to give you the money, we want a part of the promotion for the American taxpayer, “said Lutnick.
“It is not a board, we just put what a subsidy was under bides in equity for the Trump government, for the American people,” Lutnick told CNBC.
Furthermore, American companies could possibly benefit from possible schemes. For Intel, the “very unusual” deal that Trump is now considering, the wrestling chip maker can help compete with its greatest rivals, including Nvidia, Samsung and TSMC, noted BBC.
Vincent Fernando, founder of the investment consultancy Zero One, said the BBC that taking an interest in Intel is “meaningful, given the key role of the company in producing semiconductors in the US”, which is an important Trump priority.
But because Intel is likely to investigate the potential disadvantages of accepting such a deal, other companies that apply for federal subsidies can already be alerted by the relocation of Trump. Fernando suggested that Trump's deals to take ownership interests in American companies – that Professor Kevin J. Fox of the economy said that only previously took place during the global financial crisis – “uncertainty for every company that is already part of a federal subsidy program or a considerable consideration.”
Fox also agreed that the Intel -deal could prevent other companies from accepting federal subsidies, while it is possible for Intel to run his company “effectively”.
