Bernie Sanders Slams Semiconductor Support Law


“No. As part of the Endless Frontiers bill we should not be handing out $53 billion in corporate welfare to some of the largest and most profitable corporations in the country with no strings attached,” says Sanders.

The Bern has an exceedingly good point – after all eight out of the world’s top ten semiconductor companies are American so it’s a bit rich to be asking the US taxpayer to give them a handout.

The US scene parallels the European situation where the EU wants to throw money at the chip industry but the Big Three European chip companies are profitable and expanding rapidly.

We all know why this is so. The shortages are making chip users unhappy and the politicians then blame their domestic chip industry who blame foreign competition and say they can’t compete without taxpayer money.

This is after the US and EU chip industries have off-shored their production to foreigners which makes them more profitable.

Schumer makes the dubious argument that Americans only manufacture 12% of the world production of chips and that this will go down to 6% if his bill doesn’t pass. But the reason US production is 12% is because US companies have contracted out their chip production to foreign manufacturers – an arrangement which has resulted in US chip companies having 55% world market share.

To ask the US taxpayer to fund a US industry which commands 55% world market share and has eight of the top ten companies worldwide seems ridiculous.

 





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