“I don’t know how the companies (Intel and others) would replace the funding if it gets pulled,” Gold said. “In fact, I think it’s unlikely and the chip guys would just shutter whatever they are building, at least for the near term.”
The issue goes beyond CHIPS funding, Gold added, saying program cuts will hurt local communities expecting new facilities that would create jobs, pay taxes, and boost the economy. Areas such as Ohio, where projects were planned, “will miss out,” he said. And, local politicians in states expecing the grant monies, including New York, Ohio, Texas, and Arizona, are likely unhappy, he said.
“As for why Trump and company would do this, I think it’s just a short sighted view of, ‘Let’s cut all spending, without regard for what that spending ultimately means.’ As I said, you can’t accomplish bringing back manufacturing to the US simply by penalizing with tariffs. It won’t work,” Gold said. “Besides, it takes three to four years to build out a new fab, so imagine that amount of tariffs going into our products. What doesn’t have a chip in it these days? We will all be paying more for things.”
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