A brief look at some of the top questions businesses should consider as they navigate this new era of industrial policy.
Shortly after President Joe Biden signed the CHIPS and Sciences Act, he boasted that the “groundbreaking” bill would bring “hundreds of billions of dollars” worth of semiconductor investment into America.
“We learned that companies will follow if the federal government will invest in industries that we know we need and we’re prepared to help in,” Biden said.
As it turns out, America’s trade partners thought this formula was a pretty good idea too. Over the past two years, Biden’s domestic manufacturing push has propelled a global wave of industrial policy measures that have allocated more than $300bn in investments toward the global semiconductor industry.
In this environment, businesses need to understand the consequences of industrial policy to both benefit from, and avoid, the negative externalities of transformative government measures like the CHIPS and Sciences Act.
Here is a brief look at some of the top questions businesses should consider as they navigate this new era of industrial policy.