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."

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.