3 things to watch at POLITICO’s CHIPS update

It’s been more than a year since Congress passed the CHIPS and Science Act, which set aside nearly $53 billion in subsidies in a bid to restore America as a global leader in chip manufacturing and research. As the Commerce Department works to get that money out the door — and as Congress tries to pass more bills bolstering the domestic chip sector — POLITICO’s CHIPS Update will examine how Washington delivering on its promises.

The summit starts Tuesday at 8:30 a.m. EST in Washington, D.C., and guests can still register to attend here.

Here are three things to watch at POLITICO’s CHIPS Update: Feds, Fabs, and the Future of the Industry:

The impact of new export controls: Last week’s decision by the Biden administration to impose new restrictions on the sale of advanced AI chips to China is not being welcomed by the chip industry. In fact, chip executives have warned that cutting off their access to Chinese chip revenue will require them to slow down or even pare back their plans to build new fabs and foundries in the United States. David Isaacs, head of government affairs at the Semiconductor Industry Association, will lay out the chip industry’s worries over the new export controls — and Adrienne Elrod at the CHIPS program office of the Commerce Department will address how the Biden administration is responding to those concerns.

Who’s getting paid? The Commerce Department is expected to spend the first tranche of $39 billion in chip manufacturing subsidies by the end of the year — and some of the biggest companies are lining up for a share. Manish Bhatia, executive vice president of global operations at chip giant Micron, will discuss what his company needs from Washington, and how the industry plans to leverage federal subsidies for maximum benefit.

Workforce woes: Leaders across the chip industry say Washington’s efforts to reinvigorate high-tech manufacturing won’t work without skilled workers at new abs and foundries. The need is especially acute for employees with advanced STEM degrees, who are often non-citizens and are unable to work in the U.S. without reforms to the immigration system. Experts on the high-tech workforce including Shari Liss, executive director of the SEMI Foundation, and Michael Spencer, interim chair of the department of electrical and computer engineering at Morgan State University, will discuss what changes are needed to attract women, people of color and other underrepresented groups to the microchip industry.