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Biden's Semiconductor Plan Flexes the Power of the Federal Government

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President Biden viewing a model of a Micron plant to be built in Syracuse, NY. Federal funding will be distributed to chip manufacturers as they reach certain project milestones.

Credit: Kenny Holston/The New York Times

Semiconductor manufacturers seeking a slice of nearly $40 billion in new federal subsidies will need to ensure affordable child care for their workers, limit stock buybacks and share certain excess profits with the government, the Biden administration will announce on Tuesday.

The new requirements represent an aggressive attempt by the federal government to bend the behavior of corporate America to accomplish its economic and national security objectives. As the Biden administration makes the nation's first big foray into industrial policy in decades, officials are also using the opportunity to advance policies championed by liberals that seek to empower workers.

While the moves would advance some of the left-behind portions of the president's agenda, they could also set a fraught precedent for attaching policy strings to federal funding.

From The New York Times
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