DEI killed the CHIPS Act
March 7, 20241/2Insanity
DEI—the identity-obsessed dogma that goes by “diversity, equity, and inclusion”—has now trained Google’s new AI to refuse to draw white people. What’s even more alarming is that it’s also infected the supply chain that makes the chips powering everything from AI to missiles, endangering national security.
The Biden administration recently promised it will finallyloosen the purse strings on $39 billion of CHIPS Act grantsto encourage semiconductor fabrication in the United States. But less than a week later,Intel announced it’s putting the brakes on its Columbus factory. The Taiwan Semiconductor Manufacturing Company(TSMC) pushed back production at its second Arizona foundry(called a fab). The remaining majorchipmaker, Samsung, just delayed its firstTexas fab. This is not the way companies typically respond to multi-billion-dollar subsidies.
What explains chipmakers’ ingratitude? In large part, frustration with DEI. Commentators have noted that CHIPS and Science Act money has been sluggish. What they haven’t noticed is that it’s because theCHIPS Act is so loaded with DEI pork that it can’t move.
TheAct contains 19 sections aimed at helping minority groups, including one creating a Chief Diversity Officerat the National Science Foundation and several prioritizingscientific cooperation with “MSI’s”—minority serving institutions. A section called “Opportunity and Inclusion” instructs the Department of Commerce to work with minority-owned businesses and make sure chipmakers “increase the participation ofeconomically disadvantaged individuals in the semiconductor workforce.”
The department interprets that as license to diversify. Its factsheet “Building a Skilled and Diverse Workforce” asserts thatdiversity is “critical to strengthening the U.S. semiconductor ecosystem,” adding, “Critically, this must include significant investments to create opportunities for Americans from historically underserved communities.”The department does not call speed critical, although the impetus for the CHIPS Act is that 90 percent of the world’s advanced microchips are made in Taiwan, which China is preparing to annex by 2027, maybe even 2025.
Handouts abound. There’s plenty for the left—requirements that chipmakers submit detailed plansto educate, employ, and train lots of women and people of color, as well as “justice-involved individuals,” more commonlyknown as ex-cons. There’s plenty for the right—veterans and members of rural communities find their way into the typical DEI definition of minorities. There’s even plenty for the planet:Arizona Democratsjust bragged they’ve won $15 million in CHIPS funding for an ASU projectfighting climate change.
That’s going better for Arizona than the chips part of the CHIPS Act. Becauseequity is critical, the makers of humanity’s most complex technologymust rely on local labor and apprentices from all those underrepresented groups, as TSMC found to its dismay.Tired of delays at its first fab, it flew in 500 employees from Taiwan, angering local workers by claiming they weren’t skilled enough. With CHIPS grants at risk, TSMC caved in December, agreeing to rely on those workers and invest more in training them.A month later, it postponed its second Arizona fab.
NowTSMC has revealed plans to build a second fab in Japan. Its first, which broke ground in 2021, is about to begin production. TSMC has learned that when the Japanese promise money, they give it, and they allow it to use competent workers. It’s sampling Germany’s chip subsidies too, as is Intel.Intel is also building fabs in Poland and Israel, preferring risking Russian aggression and Hamas rockets to braving America’s DEI regime.Samsung is pivoting toward making its South Koreanhomeland the semiconductor superpower after Taiwan falls…
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