Former President Donald Trump recently announced the creation of a new organization, the United States Investment Accelerator. This group will be managing the implementation of the Biden administration’s Chips Act program. This new office will help change the United States’ position on semiconductor manufacturing and production. It would get at sharpening deals, building on a framework set out in the wholly bipartisan Chips and Science Act.
The United States Investment Accelerator, modeled on the Maryland Investment Accelerator, will negotiate investment attraction agreements similar to those tied to the Chips Act. This act provides $52.7 billion in subsidies to make the semiconductor industry more robust. The new office’s stated goal, according to the White House, is to win much better CHIPS Act deals. It has provided precious little information about the details of the negotiations. The administration of this new entity will guide, in many ways, the implementation of the much larger Chips and Science Act. President Joe Biden signed the CHIPS and Science Act into law on August 9, 2022.
Trump’s creation of this office comes in the context of his relentless attack on the bipartisan Chips Act. He’s called for U.S. lawmakers to scrap the program outright in the past. Instead, he would like to see the proceeds of the Chips Act put to better and higher use to address the national debt. Our new Investment Accelerator stands at the ready to help attract those kinds of investments. Despite criticisms, it seeks to lure manufacturers willing to build new plants in the United States.
Beyond signing new investment deals, the Investment Accelerator strives to speed up the regulatory maze that companies producing chips must navigate. The office’s job will be to cut through bureaucratic red tape and speed up permitting timelines, helping accelerate quicker decisions on investments. This plays neatly into Trump’s larger economic plan – supporting and strengthening American manufacturing, something authorities have since taken to calling the Trump Doctrine.
The creation of the United States Investment Accelerator is a significant shift in the approach that the federal government will take to scale semiconductor production. This change is particularly important as global competition in this sector intensifies. This initiative really hits the sweet spot. This makes it all the more important for the U.S. to retake its mantle as an international leader in technology and innovation.
Most industry watchers hope to see the details emerge soon on the particulars of the negotiations, and the operating strategy of the Investment Accelerator. The creation of this office is a momentous step in U.S. economic policy towards semiconductor manufacturing.