Ihe engineer-entrepreneur Gordon Moore, founder of Fairchild Semiconductor in 1957 then of Intel ten years later, would be delighted that his “chips” had taken on such importance, he who already wanted to make the United States, in the midst of the Cold War, leader in the nascent microchip industry. They have become a “national security issue” for Joe Biden facing a China that is trying to catch up in the design and manufacture of the latest generation microprocessors.
Act I: the American president promulgated, in August 2022, the “Chips and science act”, a law providing for 53 billion dollars (50 billion euros) in aid to reduce dependence on Taiwanese and Korean chip suppliers, often “made in China”, necessary for Apple smartphones like Lockheed Martin’s F-35 planes. Act II: the Minister of Commerce, Gina Raimondo, specified, on Tuesday February 28, the date of entry into force of the law, under what conditions the money of American taxpayers will be granted, recalling its objective: “Let the United States be the only country where every company capable of producing cutting-edge, large-scale chips is located. »
It will be give and take, she warned, drawing what the reindustrialization of America must be in the eyes of the administration. First, a way to prevent China from winning the technological battle. Grant recipients will be required to commit for ten years not to make new high-tech investments in “country of concern”, to conduct research or grant licenses to it. The Middle Kingdom is not mentioned, but it is he who is targeted, along with Russia, North Korea and Iran. The Pentagon will have privileged access to the most sophisticated chips.
Temper the excesses
“If companies do not meet our national security expectations, we will not support their projectsinsisted M.me Raimondo. They will have to comply with export control rules. » It won’t be a first. Washington has already imposed on the Dutch ASML, the world’s only manufacturer of machines for engraving chips of a few nanometers by ultraviolet laser, not to sell its latest productions to China; and Taiwanese TSMC to no longer supply Chinese telecom giant Huawei.
Mr. Biden’s demands do not stop there. The reindustrialization of the country must, according to him, temper the excesses of capitalism. Companies receiving this aid will pay the State part of the profits when they are higher than expected, share buybacks to boost their title and the payment of dividends may be limited. To attract a labor force which is sorely lacking in this sector as in others, employees will benefit from continuous training and affordable daycare for their children.
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