The U.S. Department of Commerce has proposed rules that would bar recipients of incentives under the CHIPS and Science Act from investing in semiconductor production in foreign countries of concern and some experts say such restrictions could prompt chip makers to consider whether to take the funding or keep their plans to expand in China, The Wall Street Journal reported Tuesday.
The department’s National Institute of Standards and Technology recently issued a notice of proposed rulemaking outlining guardrails to prevent the improper use of CHIPS incentives under the law, which seeks to protect U.S. technologies and innovation from foreign adversaries.
Commerce Secretary Gina Raimondo cited the administration’s stance when it comes to doing business with China.
“We want American businesses to continue to do business in and with China. And vice versa,” Raimondo told WSJ in an interview.
“But we do have to be eyes wide open about the risks presented to the United States,” she added.
A group of Senate lawmakers wrote a letter to Raimondo expressing their concerns with the grant criteria in the department’s notice of funding opportunity related to its implementation of a $39 billion program to support the construction and modernization of semiconductor fabrication facilities under the CHIPS Act.
