- 2023-03-10
The U.S. Commerce Department has a new rule: Companies receiving chip subsidies must provide childca
The Commerce Department is scheduled to issue new rules on February 28 that will clarify conditions for semiconductor manufacturers to claim industry subsidies under the Chip and Science Act, including a requirement that companies ensure child care is provided to some employees.
The Chip and Science Act last year set aside $52bn to support local chip manufacturing, including $39bn to encourage companies to build or expand production facilities. The Ministry of Commerce is responsible for enforcing the law.
According to several media outlets, including The New York Times, on Wednesday, the Ministry of Commerce asked companies applying for more than $150 million in subsidies to submit a plan to provide affordable and high-quality child care to employees involved in building or operating a factory. For example, setting up a nursery near a construction site or a new factory or providing childcare subsidies directly to employees.
In a previous interview, Commerce Secretary Gina Raimondo said providing affordable childcare would help companies attract women to fill jobs at a time of labor shortages.
Companies applying for subsidies will also have to report detailed financial estimates and any profits that "exceed expectations" to the federal government. The Ministry of Commerce hopes to regulate enterprises to make accurate financial estimates and avoid exaggerating losses to claim more funds.
President Joseph Biden reportedly had wanted Congress to allocate $200 billion to fund programs such as pre-school child care, but was unsuccessful. The Commerce Department then agreed to add universal child care to the Chip and Science Act implementation plan.
The Biden administration has repeatedly tried to "stretch" its policy intentions in relevant legislation, including the introduction of tough labor standards and "Buy American" provisions in the Bipartisan Infrastructure Act. The Ministry of Commerce on the application of industrial subsidies additional policy restrictions may open "a worrying precedent."
The Biden administration pushed for the Chip and Science Act, which aims to "repatriate" chip manufacturing through massive industry subsidies and overhanded provisions that stifle competition, thereby suppressing the growth of other countries and maintaining US hegemony. It is widely believed in the international community that the United States weaponizes science and technology and economic and trade issues with the help of this method, which will distort the global semiconductor supply chain and disrupt international trade, and is another demonstration of the economic coercion of the United States.