Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
President Donald Trump recently urged Congress to eliminate the CHIPS Act, a $52 billion subsidy program. The Governor's office had hoped this funding would attract Western Digital Technologies to establish a large microchip project in Mundy Township.
In his address, Trump highlighted Taiwan Semiconductor's $165 billion investment in U.S. microchip production without incentives. He criticized the CHIPS Act as ineffective, stating, "We give hundreds of billions of dollars and it doesn’t mean a thing . . . We don’t have to give them money; we just want to protect our businesses and our people."
Trump suggested reallocating any remaining funds from the CHIPS Act towards debt reduction or other purposes. This statement surprised the Whitmer administration, which had been collaborating with Trump's White House on "Project Grit," involving state incentives that required approval from House Speaker Matt Hall (R-Richland Township).
The Biden-era program allocated $32.54 billion in grants and $5.5 billion in loans across 48 projects by January 22, shortly after Trump assumed office, according to the Semiconductor Industry Association. However, since then, the flow of projects has ceased, and Bloomberg News reported a reduction in CHIPS Office staff.
Matt Hall stated that if funding for the proposed Mundy plant is withdrawn, the Legislature will not compensate for it but remained optimistic about Michigan's appeal to semiconductor manufacturers: “I understand that they want to get the best deal they can, but don’t assume that they won’t come.”
Rep. Steve Carra (R-Three Rivers), chair of the House Corporate Subsidies and State Investments Subcommittee, shared this view and emphasized creating a business-friendly environment with fewer regulations: “If the CHIPS Act were to die, you’re not going to shed a tear over that, right?” he was asked by MIRS. Carra replied affirmatively.
In contrast, Rep. Jasper Martus (D-Flushing) expressed concern for Genesee County residents who have experienced economic decline: “I would never forgive the current administration’s betrayal of my community or members of the previous administration for failing to avert this catastrophe,” he said.
The article was provided courtesy of MIRS News for SBAM’s Lansing Watchdog newsletter.
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