Biden conditions for chip funding cause ‘heartburn,’ industry insiders say

SAN FRANCISCO: As the Biden administration on Tuesday disclosed conditions for awarding $39 billion in subsidies to revamp U.S. semiconductor manufacturing, tech industry sources said some unexpected provisions make the funds less attractive.

Although no chip industry sources said companies would scrap expansion plans to build in the U.S., they grumbled about the U.S. Department of Commerce’s broad range of rules to receive funding, from requirements to share excess profits with the government to providing affordable child care for construction workers who build the plants.