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Looming shutdown sparks worries about CHIPS funding rollout on November 1, 2023 at 10:00 am Business News | The Hill
More than a year after President Biden signed the CHIPS and Science Act into law, the Commerce Department is pushing to get billions of dollars in semiconductor manufacturing and research incentives out the door.
But the government is set to run out of money Nov. 17, and a potential shutdown — which could slow down the program’s funding rollout — is not out of the question.
The Commerce Department’s CHIPS Program Office, which is responsible for doling out roughly $50 billion in commercial incentives and research and development (R&D) grants, would stay open during a government shutdown.
But it would “absolutely have a detrimental impact on our process,” a Commerce official, who was granted anonymity to speak candidly, told The Hill.
“It would cause a lot of challenges for us, and it would certainly impede our ability to move as fast as we want to,” the official said.
Semiconductor race takes on new urgency
Semiconductors are a vital component of everyday items, from electronic devices to transportation to military technologies.
The United States accounted for 12 percent of the world’s semiconductor manufacturing in 2020, down from 37 percent in 1990, according to the Semiconductor Industry Association’s most recent analysis.
In the race to develop the smallest, most powerful chips, the U.S. currently produces zero percent of leading-edge chips that are critical to national security.
Taiwan and South Korea are the dominant producers of the world’s leading-edge chips, raising concerns about how a potential conflict with China over Taiwan would impact supply chains.
Global demand for semiconductors has also continued to grow: McKinsey & Company estimated semiconductors could become a trillion-dollar industry by the end of the decade.
The CHIPS — which is short for the Creating Helpful Incentives to Produce Semiconductors — and Science Act aims to mitigate that risk to U.S. supply chains and increase capacity to produce high-demand chips.
“The state of the industry is one that we’re relying on Taiwan and South Korea primarily for the critical materials that are in everything we own,” Brandt Anderson, a senior policy adviser at Brownstein Hyatt Farber Schreck, told The Hill.
Before making the move to Brownstein in May, Anderson was a national security adviser for Sen. Todd Young (R-Ind.), working closely with the senator as he helped craft the CHIPS and Science Act. Young introduced earlier versions of the bill, the Endless Frontier Act, with Senate Majority Leader Chuck Schumer (D-N.Y.).
“There’s a level of urgency in figuring this out. We don’t know what the future holds,” Anderson added, pointing to pandemic-induced supply chain disruptions and the potential conflict in the Pacific.
Funding to start flowing by the end of the year
The CHIPS Program Office is working with $39 billion for commercial incentives and $11 billion in R&D funding.
The office has issued two funding opportunity notices so far this year.
In February, the CHIPS Program Office opened calls for pre-applications and applications for commercial fabrication leading-edge, current-generation and mature-node semiconductors facilities with $300 million or more in capital investment.
It expanded that in June to include large-scale semiconductor materials and manufacturing equipment.
At the end of September, the office issued an additional funding opportunity for small-scale supply chain projects of less than $300 million in capital investment.
“When our team is making a decision about where the funds are going to go, they first and foremost look through the lens of national and economic security,” the Commerce official said, adding commercial viability and a workforce plan are also critical components.
The first tranche of awards is expected to roll out by the end of this year.
Opportunities for a slice of the $11 billion in R&D funding have yet to be announced, but Commerce expects to release an additional funding opportunity notice later this year.
There’s been a huge amount of interest in the upcoming awards.
“We’ve received more than 530 statements of interests seeking CHIPS incentives to build projects across 42 states and have received over 120 pre and full applications,” the Commerce official said, emphasizing that the program cannot replace private capital.
Since President Biden took office, companies have announced more than $231 billion in semiconductor industry investments, the Commerce official noted.
Around $166 billion of that has been announced since the CHIPS and Science Act was signed into law last August.
The goal of the legislation was to incentivize companies to invest in manufacturing in the U.S., something Anderson observed many companies are eager to do anyway
“This thing lived and died many times, and we heard from a lot of companies that were saying, ‘Our customers are still asking for us to be in the United States. We are going to come. We are still moving forward. We would love for CHIPS Act to be law, but we’re going to come regardless,’” Anderson said.
Navigating challenges as priorities compete
In addition to the looming specter of a government shutdown, the program office has to juggle competing priorities with a limited amount of funding.
“The key challenge moving forward is to ensure CHIPS incentives get out the door in a timely manner and reinvigorate U.S. chip production and innovation without being spread too thin. Striking the right balance will be critical to making the most of limited CHIPS dollars,” Dan Rosso, senior director of communications at the Semiconductor Industry Association, told The Hill.
Companies are also watching to see what kind of strings may be attached to awards, including outstanding questions regarding the government’s right to intellectual property developed using CHIPS funds.
“We’ll be watching what kind of terms and conditions the Department of Commerce proposes to these different companies that come along with the money,” Angela Styles, a partner at Akin Gump Strauss Hauer & Feld, told The Hill.
“We would not make them do anything that is against their commercial interests,” the Commerce official said.
Akin Gump Senior Counsel Josh Teitelbaum, who works closely with companies in the semiconductor supply chain that are seeking CHIPS and Science Act funding, is watching the award amounts as they roll out.
“Whether they’re higher or lower will be an indication of how much funding is left in the pot to distribute to the other projects,” Teitelbaum said. “If the awards are perhaps larger than expected, other companies may get nervous about what is left as we get closer to the smaller supply chains or the R&D funding.”
Industry sources are nervous about investment
Industry representatives also told The Hill they’re worried the program may not sufficiently invest in all aspects of the supply chain, including workforce development and integrated chip manufacturing processes.
“You could also think about it as your brain in your body; the rest of your nervous system, your skeletal system, that’s what the rest of the ecosystem amounts to,” Dr. John Mitchell, president and CEO of the global electronics manufacturing industry association IPC, told The Hill.
“If you consider it just a chip act instead of a systems act, it will fail,” he added. “It’s a good step, but it’s literally just the first step.”
Such an ask may fall outside the scope of the current funding.
“It’s important to note that we are not trying to bring the entire semiconductor industry to the United States,” the Commercial official said, adding, “We want to bring some of those manufacturing jobs back here.”
But a big part of bringing those jobs back includes training people to take them on, which could be a challenge.
In a July report, the Semiconductor Industry Association estimated that roughly 67,000 — 58 percent — of the 115,000 projected new jobs in the semiconductor industry by 2030 could go unfilled.
The Commerce official noted that each applicant is required to include a workforce plan to build the next generation of workers, but they acknowledged the risk.
“If we don’t continue to work on these creative solutions and getting more people in the workforce and getting those people trained in the workforce, then there is going to be a shortage of semiconductor workers. And that’s something that we’re very focused on here,” they said.
Business, Energy & Environment, News, Technology, CHIPS and Science Act, Chuck Schumer, Commerce Department, Joe Biden, semiconductors, Todd Young More than a year after President Biden signed the CHIPS and Science Act into law, the Commerce Department is pushing to get billions of dollars in semiconductor manufacturing and research incentives out the door. But the government is set to run out of money Nov. 17, and a potential shutdown — which could slow down…
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The Cities Bracing for Trump’s Immigration Crackdown
In the wake of Donald Trump’s recent election victory and his promise of “the largest deportation operation in American history,” several major U.S. cities are bracing for potentially seismic shifts in their economic and social landscapes. As the nation grapples with the implications of this proposed policy, urban centers that have long been havens for immigrant communities find themselves at the epicenter of a looming storm.
Los Angeles, often dubbed the “City of Angels,” stands to lose more than its celestial nickname suggests. As a primary gateway for immigrants, the city’s vibrant tapestry of cultures and its economic engine could face significant disruption. From the bustling streets of Koreatown to the sun-drenched orchards of the Central Valley, the absence of undocumented workers could leave gaping holes in the city’s workforce and cultural identity.
Across the country, New York City, with its iconic skyline and melting pot reputation, faces its own reckoning. The Big Apple’s 5.9 million immigrants, many of whom are undocumented, form the backbone of industries ranging from construction to healthcare. The potential exodus could transform neighborhoods like Jackson Heights and Flushing, altering the very essence of what makes New York a global city.In the Sunshine State, Miami’s tropical allure belies the turbulent times ahead. Home to 2.5 million immigrants, the city’s economy relies heavily on sectors like tourism and hospitality – industries where undocumented workers often fill crucial roles. The potential deportation of these workers could send shockwaves through Miami’s economic ecosystem, from South Beach’s glitzy hotels to the agricultural heartlands of South Florida.
Chicago, the “City of Big Shoulders,” may find those shoulders significantly weakened. With 1.7 million immigrants in its metropolitan area, the Windy City’s diverse neighborhoods and industries face an uncertain future. From the meatpacking plants to the tech startups, Chicago’s economic resilience could be tested like never before.
In the Lone Star State, Houston and Dallas stand as twin testaments to the complexities of immigration policy. These Texas titans, each home to large immigrant populations, could see their booming economies stumble. The construction sites that dot their ever-expanding skylines and the service industries that keep these cities humming could face unprecedented labor shortages.
Out West, the San Francisco Bay Area’s reputation as a bastion of innovation and progress could be challenged. The region’s tech industry, often reliant on immigrant talent, might find itself grappling with a new reality. From Silicon Valley’s coding campuses to the agricultural expanses of the Central Valley, California’s economic powerhouse could face a reckoning. Phoenix, rising from the Sonoran Desert, could see its growth trajectory altered. As Arizona’s urban center, it stands at the forefront of the immigration debate, potentially facing not just economic impacts but social and political upheaval as well.
These cities, along with others like San Diego and Las Vegas, are not just facing potential economic disruptions. They are staring down the barrel of profound social change. Family separations, community fragmentation, and the erosion of cultural enclaves built over generations are all possible consequences of mass deportations. Moreover, the fiscal implications are staggering. Undocumented immigrants contribute billions in taxes annually, often without receiving the full benefits of their contributions. Their sudden absence could leave gaping holes in city budgets, potentially affecting public services and infrastructure projects.
As these urban centers brace for impact, the debate rages on. Supporters of stricter immigration policies argue for the need to enforce laws and protect American jobs. Critics warn of economic devastation and the unraveling of America’s urban fabric. What’s clear is that America’s cities stand at a crossroads. The coming months and years will likely reshape urban landscapes in ways both visible and invisible. From the foods we eat to the services we rely on, from the neighborhoods we call home to the very character of our cities, the impacts of this proposed immigration crackdown could be far-reaching and long-lasting. As the nation watches and waits, these cities – vibrant, diverse, and economically vital – find themselves on the front lines of a policy that could redefine what it means to be an American city in the 21st century.
Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring filmmakers. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!
Business
How Trump’s Deportation Plans Could Reshape Major Cities
In the wake of Donald Trump’s recent election victory, his ambitious plans for mass deportations have thrust America’s urban centers into the spotlight. As the nation grapples with the potential implications of what Trump calls “the largest deportation operation in American history,” cities across the country are bracing for significant changes that could reshape their economic, social, and cultural landscapes.
The stakes are particularly high for metropolitan areas like New York, Los Angeles, Houston, Dallas, and Miami, which host the largest populations of unauthorized immigrants. These cities, along with other major urban hubs such as Chicago, Washington D.C., and San Francisco, stand at the forefront of a looming transformation that could reverberate throughout the nation.
Economic Tremors
Economists warn that the proposed deportations could send shockwaves through urban economies. Mark Zandi, chief economist at Moody’s, cautions that businesses would face “significant challenges” if a substantial number of immigrants were removed. Industries such as construction, hospitality, and healthcare—pillars of urban economies—could face severe labor shortages.
Joe Brusuelas, chief economist at RSM, emphasizes the potential ripple effects: “The native-born workforce cannot meet current labor demands.” This labor gap could lead to increased wages, potentially rekindling inflation—a concern that looms large over city planners and policymakers alike.
Community Fabric Under Strain
Beyond economic considerations, the social fabric of cities hangs in the balance. Elena, a Nicaraguan immigrant in Houston, voices a fear echoed in immigrant communities across the nation: “I’m scared… This is my home.” The threat of family separations, particularly in mixed-status households, casts a long shadow over urban neighborhoods.
Immigrant advocacy groups like FIEL are mobilizing, advising clients to prepare for “anything that can happen.” This atmosphere of uncertainty could lead to decreased community engagement and cooperation with local authorities, potentially impacting public safety and community cohesion.
Cities at a Crossroads
As the debate intensifies, cities find themselves at a crossroads. Some, like New York and Los Angeles, have historically positioned themselves as “sanctuary cities,” often at odds with federal immigration enforcement. The impending clash between federal policy and local governance promises to be a defining feature of this new political landscape.
Meanwhile, the logistical challenges of implementing such a massive deportation operation remain daunting. Questions abound regarding detention facilities, transportation networks, and the sheer manpower required to carry out Trump’s vision.
Looking Ahead
As America’s urban centers brace for potential change, the full impact of Trump’s deportation plans remains to be seen. Legal challenges are all but certain, and the resilience of America’s cities will be put to the test.
What is clear is that the coming months and years will be pivotal for urban America. As Jason Miller, a senior Trump adviser, puts it, the plan is to “immediately reinstate” immigration policies from Trump’s first term. For America’s cities, this could mean a period of unprecedented change, challenge, and, potentially, transformation.
As the nation watches and waits, the story of America’s cities in the face of this ambitious deportation plan is just beginning to unfold. The outcome will undoubtedly shape the future of urban life in America for years to come.
Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!
Business
Donald Trump Wins 2024 USA Election
Based on the election results, Donald Trump has indeed won the 2024 U.S. presidential election, defeating Vice President Kamala Harris. Here’s an analysis of the key statistics and implications:
Electoral College Victory
Donald Trump has secured the presidency by winning crucial battleground states and flipping some key states that were previously held by Democrats. The final Electoral College tally is still being determined, but Trump has surpassed the 270 electoral votes needed to win.
Battleground State Performance
Trump’s victory was largely secured by winning several critical swing states:
- Wisconsin: Trump’s win here was pivotal in securing his path to victory.
- Pennsylvania: This state flipped back to Republican control.
- Georgia: Another key state that Trump managed to win back.
- Michigan: Trump successfully flipped this traditionally Democratic stronghold.
Popular Vote and Voter Priorities
While the final popular vote tally is still being calculated, exit polls provide insight into voter priorities:
- Economy and democracy were top concerns for voters.
- Abortion and immigration also played significant roles in voter decision-making.
Congressional Control
The election results extend beyond the presidency:
- Republicans are set to take back the Senate majority, securing at least 51 seats.
- Control of the House of Representatives remains undetermined.
Media Implications
The outcome of this election could be seen as a challenge to mainstream media narratives for several reasons:
- Polling Discrepancies: Many pre-election polls suggested a tight race or even a slight Harris advantage in key states. Trump’s victory, particularly in battleground states, may indicate that polls underestimated his support.
- Narrative Shifts: Throughout the campaign, much of the mainstream media focused on Trump’s legal challenges and controversies. His victory suggests that these issues may not have resonated with voters as much as economic and policy concerns.
- Voter Priorities: The emphasis on issues like the economy and immigration in voter decision-making may indicate a disconnect between media focus and voter concerns.
- Electoral Predictions: Many mainstream outlets were cautious about predicting a Trump victory, even as results began to favor him. This hesitancy could be seen as a reflection of broader media skepticism about Trump’s chances.
- Underestimation of Trump’s Base: The results suggest that Trump’s core support remained strong and potentially grew, despite negative coverage in much of the mainstream media.
It’s important to note that while the election outcome may challenge some media narratives, it doesn’t necessarily invalidate all mainstream reporting. The complex factors influencing voter behavior and the challenges of accurate political forecasting remain subjects of ongoing analysis and debate.
As the dust settles on this historic election, both the media and political analysts will likely engage in extensive reflection on the factors that led to Trump’s victory and the implications for future political coverage and analysis.
Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!
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