Ana Swanson

Biden got Congress to approve hundreds of billions of dollars of subsidies that could be given out in direct investments in cash to American companies. And that's a level of direct investment in corporations that we haven't seen since the Eisenhower administration.

Biden got Congress to approve hundreds of billions of dollars of subsidies that could be given out in direct investments in cash to American companies. And that's a level of direct investment in corporations that we haven't seen since the Eisenhower administration.

Yeah. And then he really directs this cash at targeted industries, industries that he sees as the businesses that we want for the future. Things like computer chips, electric vehicles and solar panels.

Yeah. And then he really directs this cash at targeted industries, industries that he sees as the businesses that we want for the future. Things like computer chips, electric vehicles and solar panels.

So let's focus on computer chips. Chips are in every technological thing that we use, everything with an on-off switch. Phones, cars, dishwashers, sophisticated military equipment, all are powered by chips. And the supply chain issues during the pandemic exposed a big problem, which is that U.S. companies design a lot of the world's chips, but we don't actually manufacture them.

So let's focus on computer chips. Chips are in every technological thing that we use, everything with an on-off switch. Phones, cars, dishwashers, sophisticated military equipment, all are powered by chips. And the supply chain issues during the pandemic exposed a big problem, which is that U.S. companies design a lot of the world's chips, but we don't actually manufacture them.

Yeah. Taiwan is a bit insecure because Taiwan is so close to mainland China and Taiwan, which China claims is its own and has threatened to invade.

Yeah. Taiwan is a bit insecure because Taiwan is so close to mainland China and Taiwan, which China claims is its own and has threatened to invade.

And so in 2022, the Biden administration works with Congress to pass the CHIPS Act.

And so in 2022, the Biden administration works with Congress to pass the CHIPS Act.

And that secures about $50 billion of funding to help increase the domestic manufacturing of chips and to invest in things like research and development.

And that secures about $50 billion of funding to help increase the domestic manufacturing of chips and to invest in things like research and development.

Essentially, this over the longer run transforms the government into kind of this venture capital firm that is looking at chip companies around the United States and deciding which ones of them to invest in, which ones of them deserve more money to grow.

Essentially, this over the longer run transforms the government into kind of this venture capital firm that is looking at chip companies around the United States and deciding which ones of them to invest in, which ones of them deserve more money to grow.

Exactly. So the government is making a bunch of investments in dozens of companies. And the single biggest recipient is a company called Intel. So Intel, a lot of people probably know of them. But, you know, there's been an issue with awarding this money to Intel, which is it's a company that lately seems like it's just a bit past its prime.

Exactly. So the government is making a bunch of investments in dozens of companies. And the single biggest recipient is a company called Intel. So Intel, a lot of people probably know of them. But, you know, there's been an issue with awarding this money to Intel, which is it's a company that lately seems like it's just a bit past its prime.

So Intel used to be this absolute powerhouse. They were the primary chip maker behind the personal computer boom. And in the 80s and 90s, they were a huge and successful company. But they've gradually lost that perch for a couple of reasons. They missed the boat on some major tech innovations.

So Intel used to be this absolute powerhouse. They were the primary chip maker behind the personal computer boom. And in the 80s and 90s, they were a huge and successful company. But they've gradually lost that perch for a couple of reasons. They missed the boat on some major tech innovations.

At one point, they turned down a deal with Apple that could have given them a piece of the smartphone market. And they never really got back into smartphones, which are obviously a huge use of computer chips. And then they also missed the boat with the kind of chips now that power artificial intelligence, which are made by companies like NVIDIA.

At one point, they turned down a deal with Apple that could have given them a piece of the smartphone market. And they never really got back into smartphones, which are obviously a huge use of computer chips. And then they also missed the boat with the kind of chips now that power artificial intelligence, which are made by companies like NVIDIA.