Subsidies With a Side of Chips

A preview of last night’s 60 Minutes profile of Commerce Secretary Gina Raimondo.

The complete segment can be seen here:

https://www.cbsnews.com/news/commerce-secretary-gina-raimondo-on-us-microchip-production-blocking-of-sales-to-china-russia-60-minutes-transcript/

Will Intel use its $8.5 billion from the Chips and Science Act to do anything more than cover the company’s $7 billion loss in chip fabrication?

https://www.cnbc.com/2024/04/03/intel-drops-almost-8percent-after-chipmaker-reports-hefty-loss-in-foundry-business.html

I’ve become cynical about government industrial policy. The reason why is the risk of picking winners — and losers — in a targeted market. Which happened with the HITECH Act of 2009 and hospital information system software. Epic Systems was the big winner, with its database vendor, Intersystems, also benefiting.