Biden's CHIPS Act Faces Criticism for DEI Requirements, Spurs Major Investments

The CHIPS and Science Act, aimed at boosting U.S. semiconductor production, has sparked debate over its diversity requirements while attracting billions in investment.

The CHIPS and Science Act, signed by President Biden in August 2022, ties $52.7 billion in funding for semiconductor production to diversity, equity, and inclusion (DEI) requirements.
Critics, including Rep. Jim Banks and Strive Asset Management, argue that the DEI requirements may hinder investment and delay projects.
The Act has led to significant investments, including a $8.5 billion grant to Intel for semiconductor plants in Arizona, expected to create thousands of jobs.
Opponents claim the DEI mandates could deter foreign investment and add costs, while supporters argue it promotes inclusivity and benefits the economy.
Despite criticisms, semiconductor projects are underway, with the federal government announcing multiple agreements with industry players.