Right now, all eyes are on chip manufacturers as the U.S. tries to completely own the chip market. The U.S. government is trying to move more semiconductor manufacturing over to American soil, and it caused some turmoil in the tech space. According to a new report, the CHIPS Act is now in trouble thanks to a mass layoff.
The tech industry is no stranger to mass layoffs, as tens of thousands of workers have lost their jobs over the past couple of years. However, this isn’t due to the global stock market or AI. This one is due to the new/old U.S president Donald Trump. Who would have guessed?
The CHIPS Act sees a mass layoff
The CHIPS (Creating Helpful Incentives to Produce Semiconductors) Act is a program created by former President Joe Biden to help foster more chip manufacturing on U.S. soil. It offered additional funding to help build plants. Well, since the new presidential term, we should have known that this was on the chopping block. Every new president gets to work getting rid of policies and laws that the former president brought in. Whether it’s due to a difference of opinion or just out of pure spite.
Either way, the report states that President Trump said that the CHIPS Act was a waste of government money. So, what’s his solution? You guessed it, terrifs! He believes that a better way to boost chip manufacturing in the U.S. is to double down on tariffs and force foreign countries to pay more to import goods.
We shouldn’t be surprised at this point. The CHIPS Act saw a massive 80% layoff, which would devastate any entity. Not only that, but it adds more people to the growing list of unemployed governmental workers that started populating since the term began.
While Trump thinks that this is a good idea, others aren’t so keen on it. Samsung and SK Hynix are worried about this development. The former had been working on a plant in Texas, but that could be in jeopardy. At this point, there’s no telling what will happen, but we can tell that it won’t be a magical solution.
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