U.S. Must Stay the Course on Chips Act: Raimondo

more than ever, national security requires technological security, requires the United States to lead … all of our competitors in technology, particularly in AI and semiconductors, and requires secure supply chains,” she told the Reagan Defense Forum in California. Raimondo was asked about President-elect Donald Trump's comments, made during the campaign, that he opposes subsidies in the Chips and Science Act of 2022 and that the act was a bad deal for the U.S. , Responding to calls for overturning the act, Raimondo said, “It’s a horrific idea. It’s a reckless idea": “Sometimes you say things on the stump, and I can only hope that was something to be said on the stump and won’t be acted out.” In November, House Speaker Mike Johnson, R-La., noted interest in having the House repeal the Chips Act but reversed course following a bipartisan outcry (see 2411040062). Raimondo noted that 100% “of leading-edge chips used in fighter jets, AI technology, nuclear simulation, drones” are made in China and Taiwan. By the end of the year, the department expects to complete $35 billion of the $39 billion allocated in awards to 26 companies to build plants in the U.S. In addition, it expects it will award nearly all $11 billion targeted for research funding. “We’re getting the job done,” she said. "It has been brutally difficult.” Taiwan’s TSMC makes 100% of the world’s most sophisticated chips and people said the company would never expand in the U.S., Raimondo said: “Wrong -- they’re doing it” and TSMC is building three facilities in Arizona. “It’s an incredible thing, and you’re all safer because of it.” Raimondo said ultimately the U.S. will need to invest more to compete with China. She noted that China is now building 21 semiconductor factories. Permitting reforms are critical, she noted. “It can’t take two years to go through permitting in order to build a factory -- that is not competitive."