The daily business briefing: March 1, 2023

Biden announces conditions for chip subsidy recipients, Tesla to build plant in Mexico, and more

A Tesla charging station
(Image credit: Kena Betancur/VIEWpress via Getty Images)

1. Biden announces conditions for chip subsidy recipients

The Biden administration on Tuesday started the process of distributing nearly $40 billion in subsidies for semiconductor manufacturers. The Commerce Department released its plans to start taking applications for the program in June, saying it would require companies receiving money, including a 25 percent investment tax credit for construction of chip plants, to provide child care for employees, use low-emission energy sources, pay union wages for construction workers, and share excess profits with the government. Commerce Secretary Gina Raimondo said the program was a "national security initiative," because the United States has become "much too reliant upon Taiwan for leading edge chips," putting the nation at a disadvantage in "very heated global competition with China."

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us