Gina M. Raimondo, United States Secretary of Commerce, speaks onstage during the first day of the Democratic National Convention at the United Center on August 19, 2024 in Chicago, Illinois. (Alex Wong/Getty Images)
RNDF 2024 — President-elect Donald Trump’s threat to abandon the CHIPS Act would be a “horrific,” “reckless” act that would only benefit China, Commerce Secretary Gina Raimondo warned today.
During the campaign, Trump criticized the CHIPS Act, which seeks to fund domestic production of semiconductor chips that are now primarily produced in Taiwan, and indicated a desire to kill the effort. Speaker of the House Rep. Mike Johnson had said the House would seek to follow through, but later walked it back.
Raimondo, who is the lead on implementing CHIPS, didn’t hold back when asked about Trump’s threat during today’s Reagan National Defense Forum event in Simi Valley, Calif.
“It’s a horrific idea. It’s a reckless idea,” she said. “Sometimes you say things on the stump, and I can only hope that was something to be said on the stump and won’t be acted out.
“It is untenable that the United States of America buys 100 percent of leading-edge chips used in fighter jets, AI technology, nuclear simulation, drones — a hundred percent of those chips are made in Taiwan and tested in China. Do something about it. Fix it. That’s what we’re doing, that’s what the CHIPS Act is doing. If you want to hold us accountable, say go faster, be clearer, do a better job, fine, I’ll listen to that. But if you want to say undo it, that’s not right. It’s reckless, its not fair, and it makes us less safe.”
In an interview with Breaking Defense, Sen. Mark Kelly, one of the bill’s sponsors, said he would meet with Trump’s team this week to advocate for the legislation’s survival.
“The whole idea behind doing this started during his administration, and this should be the kind of thing that he would support,” the Arizona Democrat said on the sidelines of Reagan National Defense Forum.
“It is important to our national security from a China lens, it’s bringing jobs back to the United States, good paying jobs you can raise a family on,” he said. “And it seems it’s working, and we’re going to have the semiconductor chips rolling off the production line. That has already started. So why end something that’s good for our economy?”
Part of Trump’s argument was to replace the CHIPS Act, which Raimondo said has allocated $35 billion in funding, with tariffs on chips coming in from abroad. While stating that tariffs “have their place,” the commerce secretary emphasized that they are “not a substitute” for what CHIPS is trying to accomplish.
“We need investments in research and development, in workforce, in infrastructure, so we can be great in the US,” she said. “It’s a race. Tug on [China’s] shirt where you can to slow them down, but you better just be prepared to run faster.”
“Export controls matter. Sanctions matter. Holding China back matters. But it’s just a speed bump,” she continued. “We are not gonna beat China by trying to slow them down. We’re going to beat them by going faster. So invest in America, invest in our technology, invest in our companies, invest in our infrastructure, invest in our talent, and do it with our allies.”
Coincidentally, Raimondo’s appearance came days after Intel’s CEO was forced to resign by the board of directors. Intel has been a leading focus of CHIPS support, leading to a question about whether that is a blow to the efforts from the Biden administration.
For her part, Raimondo conceded that “There’s no secret Intel has struggled,” but said “I believe they will come out of this” and be successful as a chip producer in the long run.
Updated at 12/7/2024 with comments from Sen. Mark Kelly.
