➡ The Biden administration has allocated $162 million from the Chips and Science Act to microchip technology, specifically to companies that focus on national security chips. The funding aims to expand chip fabrication, create more US jobs, decrease dependency on foreign suppliers, and boost national security.
➡ The text focuses on the U.S. government’s funding in microelectronics research, fabrication and workforce training, and the enhancement of 5G network supply chains. This includes the CHIPS Act, which incentivizes semiconductor production through tax-related benefits and large sums allocated to science, technology, engineering, and math (STEM) programs and institutions. Additionally, it discusses the cynical view of this state spending as heavily influenced by special interest groups and highlighting concerns about funding delays and a potential increase in China’s influence through AI and manufacturing industries.

Biden is sending $162,000,000 for chips. Let’s take a look, y’all. Let’s get back to the money. We gotta focus. Welcome back, everybody. The White House announcing a preliminary deal when microchip technology, with microchip technology as part of the administration’s Chips and Science Act. Christina Partzanevillis joins us right now. She’s got more on that story. And, Christina, a good morning. Good morning. Well, the Biden administration is again choosing to focus on national security in the military with its second chipset grant of $162,000,000 to microchip.

Microchip makes these small chips used for very specific technology tasks. So not like the Nvidia chips that we always talk about used in AI systems. These mature chips are critical, though, for America’s auto sector, the industrial, as well as defense industries. Michaela, you get on out of here. Stop. You don’t explain. Y’all break up. Go to the different sides. We focus on the chip act. All right. The money is going to be 90 million of the chips act grant going to modernize a fab in Colorado, and the remaining 72 will be for a fab in Oregon.

Senior administration officials promised the grim. Let me go back for a minute. I want to break this down. Microchip Technologies is a chip company. Now, for those of you that are not familiar, Biden signed the Chips act. That was one of his milestone legislation initiatives that he signed during his tenure as president, which I don’t anticipate him continuing to be president for long. But this is one of the milestone acts that he signed while he was in office.

The Chips act for this 162,000,000 that he’s earmarking, $90 million is going to go to a Colorado fabrication expansion where they built the chips. 72 million of it is going to go over into a plant over in Oregon. And they’ve been the one. They’re the company. They’re a publicly traded company, a publicly traded company that has earmarked monies for. This is the federal government, y’all. They earmarked monies in order to continue to send them money.

Now, these companies make a lot of money. They are very, very profitable. But we’re earmarking at least 162,000,000 in order to expand fabrication of chips. But they’re saying that they’re doing it for national security. So that’s the umbrella. That’s the umbrella that they have all of this under. They said, hey, we need to earmark this money for the Chips act and for national security. I’m going to bring it up for you all and I’m going to break it down for you all as soon as we get through this.

The remaining 72 will be for a fab. In Oregon, senior administration officials promised that this grant would triple production and provide roughly 700 new us jobs. The goal is, of course to reshore and be less reliant on foreign suppliers. Rather than pick intel or Taiwan semi as first recipients, the Biden administration is choosing to focus on national security chip producers like microchip. Just a few weeks ago, the first official Chips act award of $35 million was allocated to BAE Systems, a military contractor.

So the $53 billion Chips act funding actually has 39 billion allocated to all of these manufacturers on american soil. The Department of Commerce will have their hands filled after receiving roughly 570 statements of interest in over. So let me break this down for you all. I want to bring this up on my screen so you all can see exactly what it is and where the monies is being allocated.

All right, let me see if I can pull this up. The Chips and Science act. All right, this was, I believe, signed in August of 2022. And I’ll actually bring it up on my screen so you all can see it for yourself. All right, this is the Chips and Science act, right? And basically it’s investing $280,000,000,000 to bolster us semiconductor capacity and to catalyze research and development and create a regional high tech hub for a bigger, more inclusive STEM workforce.

Diversity, equity and inclusion. Bigger and more fruitful STeM workforce. Hold on, let me go back. Actually, I want to go onto it on the federal government website really quickly. I don’t want to go there. Let’s go to White House Gov on a fact sheet. So the idea of it is that this is really a war that they end with China and for other countries for technology. Right. It’s one of the reasons why we have Taiwan on our list of places that we want to support even when we having them in the same vein as Israel and Ukraine.

So what Biden is doing in their administration is basically doing. Right. You can correct me if I’m wrong. What Biden and their administration is doing is they’ve created a chips act that they signed in 2022. A lot of you all may not be familiar with it. A lot of you all may be familiar with it a little bit, but you don’t really know what’s going on. I covered this two years ago, but we’re going to bring it back to the forefront because the money is now just being allocated.

So when we go over stock club inside of the Patreon and we go through the different chips companies to see whether or not we should allocate more resources or bolster our portfolio as a result of it, we want to see where the money is going. But basically one of his milestone moments, including the infrastructure deal, was a part of the ChipS act. And it says in President Biden’s first year, and this is the actual White House Gov.

So they are telling you out of their mouth what their goal is, and then I’m gonna break it down. From a C students perspective, they’ve implemented an industrial strategy to revitalize domestic manufacturing code for we don’t want our technology to be over in China and we don’t want to have to continue to compete with what’s going on in Taiwan and the battle for it, because based off of what we want our military industrial complex to be or we want it to continue to be at the forefront of all of these other countries, it’s important for us to make sure we invest in semiconductor chip technology.

Well, how are they going to do that? Well, you take all of these already established chip companies and you incentivize them to build and manufacture and continue to reinvest money. And they give them monies. They give them free monies to expand. They give them free monies and incentives, and they give them tax breaks to expand over in Oregon and Texas and all of these places. And they give them monies to continue to grow and say that we don’t want you to do business over there because that’s the question that y’all really gonna ask me.

Well, why would they give money, why would they give this free american tax dollars that y’all paying to these federal government? Why would they give that free money out? Well, they basically saying, well, we want you to be our chip manufacturer and we’re guaranteeing to continue to spend this amount of money over here, but we don’t want you to do business with them over there. One of them is China.

Okay? And so they gonna make it under the guise of because the only way that you can sell it to the american people and get buy in from Congress and other legislative branches, they’ll say, well, what we want to do is we want to create jobs for the american people. They don’t, they want to protect the interests of America. And so they’re going to say, well, we’re going to create good paying jobs and strengthen american supply chains and accelerate the industries of the future.

And these policies have spurred a historic recovery in manufacturing and adding 642,000 jobs since 2021, where today President Biden will sign in a law to bipartisan Chips and Science act of 2022. Micron is announcing $40 billion in investment. Qualcomm Global Foundries, the Chips and Science act. Well, let’s go back to the original article that I was showing you guys. All right, here’s what’s in it. $280,000,000,000 earmarked for the chips companies, companies that are already multibillion dollar companies.

They’re allocating monies to it in order to get exclusivity to whatever it is that they produce and the first opportunity to buy sign a chips act. All right. Directs $280,000,000,000 in spending over the next ten years. That’s $280,000,000 a year that they’re earmarking to send over to these companies. It goes on to say that this is where the funding is. STEM research and development, workforce and economic development programs.

Authorizations at National Science Foundation’s US Department of Energy and US Department of Commerce. It’s insane, man. So if you want to know where your american dollars are going, this is where. $50 billion in investments over five years. 11 billion to advance semiconductor research and development. $75 billion direct loan and loan guarantee program. 6 billion to cover the loan and the loan guarantees. 2 billion for legacy chip production.

So that’s chips that they already have in production that they already making. 39 billion to accelerate and drive domestic chip production. Basically, they paying them to build the plants that they don’t own. They giving them money to build plants that they already are going to own or they already own. All right. 2 billion to the Department of Defense to fund microelectronics research and Fabrication and workforce training. 1.

5 billion for the US Telecommunications act, which aims to enhance competitiveness of software and hardware supply chains of open ran 5g networks. 500 million to the Department of State to coordinate. I don’t even know what all of these departments are. What? Foreign government partners on semiconductor chip supply chain security. Come on, man. This is the breakdown of national security funding within creating helpful incentives to produce semiconductors. They put a nice acronym on it and call it the Chips and Science act.

Tax credits of 24 billion as spur private investment until January 1, 2027. This is crazy, man. And you can’t even protect our borders. 174,000,000,000 earmarked for investment in science, technology, engineering and math programs, workforce development and r and D. Wow. 81 billion for the National Science Foundation, US Department of Energy gets 67. 1 billion. Gosh, this is crazy. So anyways, they’ve allocated monies and they’ve already signed the CHIPS act, which.

And somebody said, jerrell Davis says, I never voted for this. Yes, you did. You voted for it when you voted in the Congress, when you voted in the president of the United States, you authorized them to act on your best interest in your behalf. Even if you don’t know what’s going on, even if you never knew what was in the chips act, you automatically signed into this. And so now that they’re allocating the monies, you saying, well, I never voted for this.

Yes, you did. Yes, you did. Except for the issues that you voted for was largely being celebrated as black lives matters. Or if you don’t vote for us, then you’re not black. Or Sandra Bland and George and all of this other type of stuff. And defund the police they sold you because that’s the issue. Abortion rights, those were the issues that you wanted to hear. We gonna figure out how to link up with Ice Cube after we get elected.

But along with those other policies, if you went to their presidential website and everything that’s going on, and it’s a reason why people ask you all the times. And I was looking at an interview with Vivek just recently over the weekend, and he said, listen, it’s going to cost at least $2 billion to get somebody into the White House. Well, why will we spend $2 billion to get a person into the White House that’s going to make less than a half a million dollars a year? Because other people have special interests behind why they want to see these people in office.

And it’s not just the president. It’s Congress, the House of Representatives, everything. It’s everything. And it’s all there for you to see. But the thing that they know that you only gonna pay attention to is the thing that they advocating in front of you. And so when all of y’all forgot about every reason why you protested and they was giving you a little bit of stimulus check and stimulus money, in the meantime, the big dogs was getting $280,000,000,000 allocated to them for over the next ten years.

And you taking scraps off the table and they paying for it with your money. It’s your money that’s funding it, and they’re going to sell it to you in the form of jobs that you never going to get. And why would they spend $2 billion so they can get $280,000,000,000 that’s why. That’s the best investment that you can make. Why would I spend $2 billion? And guess what? Most people that’s playing the game is playing it on both sides.

They plan it for the favor and the lobbyists on both sides. Donald Trump is notorious for when he was a citizen or when he was just a businessman and he wasn’t a politician for saying, and he’ll say this, he donated to both Republicans and Democrats at the same time. Why? Because it’s in the best interest of people that actually look to get certain things passed through that they’re then going to make a lot of money from.

It’s the best investment that you can make for 170 pre and full applications for funding. That means out of that 39 billion, there’s still a lot more money left to be dispersed to other companies. So we’re expecting more awards in Q one of this year. The money is kind of slow to get out. I’ve heard various companies who have complained about this and gone on back and forth.

It takes a lot. Companies are complaining about the fact that the federal government is slow to send them, nay, dollars. Ain’t that crazy? Long time to build up these fabs. It takes a long time, I would guess, to retool them. How long are we talking before we really get an influx of new chips? That it’ll be five plus years. To your point, the fabs could take anywhere between three and five years.

Many of these companies have started construction, specifically with microchip. They actually announced that they were going to be building these fabs and modernizing it back in February. So they did this before even receiving the chipsack funding. The chipsack funding is only going to contribute maybe 10% of the total cost. They promised $880,000,000. So it’s a small portion, and the government wants you to know that it’s not a handout.

We’re trying to incentivize private investment on us soil. So it’s a combination of private and public. The problem, though, from the chip side, is that it’s taking a while. But then the government side, I did a whole piece on it. They’ll argue, what are you talking about? Just since February 2022, we’ve already given two awards. It takes a lot of people. We have over 100 staff members, 500 applications or statements of interest, I should say.

So it’s not an easy task. And the whole goal is to stop relying as much on China. And it’s interesting with this, is focusing on these mature chips and the concern the near future is we’re all focused on AI. We’re cutting off China. And China is just going to continue to dominate on the mature node side, which is for the auto sector, industrial. And so that’s what the Biden administration is showing that we, and this is exactly what I explained to you before she even broke it down to you.

And I’ve been harping on this and preaching on this for over two years now. And now you’re starting to see the monies get dispersed. Well, why do you think that these people started building? Because they already knew that the money was coming. Well, how did they know that the money was coming? How did they know that they was going to be the one selected? How do you think that they know that they was going to be selected?.