President Donald Trump last Tuesday night asked Congress to “get rid of the CHIPS Act,” the $52 billion subsidy program the Governor’s office had hoped would be used to lure Western Digital Technologies to build a massive microchip project in Mundy Township.
During the State of the Union-like speech, Trump mentioned Taiwan Semiconductor announced a $165 billion investment to build microchips in the United States without any incentives.
“Your CHIPS Act is a horrible, horrible thing,” he said. “We give hundreds of billions of dollars and it doesn’t mean a thing . . . We don’t have to give them money; we just want to protect our businesses and our people, and they will come because they won’t have to pay tariffs if they build in America.
“You should get rid of the CHIPS Act and whatever’s left over, Mr. Speaker, you should use it to reduce debt or any other reason,” Trump said.
The comments seem to have caught the Whitmer administration off guard. They had been working with the Trump White House to keep what has been called “Project Grit” afloat with the help of House Speaker Matt Hall (R-Richland Township), who would need to sign off on the state incentives that were included in the package.
Whitmer’s office did not respond for comment on the development.
The President Joe Biden-era program had set aside $32.54 billion in grant awards and $5.5 billion in loans to 32 companies across 48 projects in 23 states by Jan. 22, two days after Trump took office, according to the Semiconductor Industry Association.
Since Trump took office, though, the regular stream of projects coming from the CHIPS office has been shut off. March 3, Bloomberg News reported Trump’s White House has eliminated two-fifths of the CHIPS Office staff.
If the seed money for the proposed Mundy plant goes away, Hall told the press Wednesday that the Legislature won’t be kicking in funding to make up the difference, whatever amount that ended up being.
Still, Hall said that doesn’t mean a semiconductor manufacturer wouldn’t still choose to set up shop in Michigan.
“I understand that they want to get the best deal they can, but don’t assume that they won’t come,” Hall said.
The new chair of the House Corporate Subsidies and State Investments Subcommittee, Rep. Steve Carra (R-Three Rivers), was of the same mindset. If a business wants to move to Michigan, he’s looking to create a business-friendly environment with fewer regulations to help make that happen.
“If the CHIPS Act were to die, you’re not going to shed a tear over that, right?” MIRS asked Carra.
“That’s something that would not offend me, no,” he responded.
Rep. Jasper Martus (D-Flushing) was of a different mindset. He said people in his community barely remember or never experienced a time when Genesee County thrived. They’ve only experienced decline, disinvestment and disappointment. That’s why the Mundy Township project was such a big deal for them. He fears if the CHIPS Act goes away and the deal never materializes, Genesee County will never get another chance.
“I would never forgive the current administration’s betrayal of my community or members of the previous administration for failing to avert this catastrophe,” Martus said.
Article courtesy MIRS News for SBAM’s Lansing Watchdog newsletter
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