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Commerce Secretary Says CHIPS Bill Has Sufficient Guardrails

Commerce Secretary Gina Raimondo, during a July 24 interview on Face the Nation, said that although some critics of the CHIPS bill say it helps semiconductor companies expand chip production in China due to grandfather provisions, she says the guardrails are adequate.

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The Senate voted 64-32 to start debate on the bill July 26, crossing the 60-vote threshold for the filibuster even with some Democratic absences due to COVID-19.

"Companies can't use this money to build facilities in other countries. Companies who accept this money can't then turn around and be building facilities in China for leading-edge technology," Raimondo said. She added, "There are taxpayer protections. It will be a competitive, transparent process. And - and there's claw-back provision. If we give the money to companies and they do what they're not supposed to, we're going to take the money back. I feel very confident around the taxpayer protections, and the China guardrails."

Host Margaret Brenna asked if the Commerce Department should implement stricter export restrictions to make this effort to increase domestic semiconductor manufacturing more successful, and Raimondo replied, "We always have to be looking at our export controls."