Trump mulls allocating $2B of CHIPS Act funds to boost U.S. critical minerals supply chain — move aims to reduce American dependence on China for its rare-earth needs
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A U.S. court has ruled in favor of Anthropic, temporarily preventing the Pentagon from labeling the company a supply chain risk. The dispute arose when the military demanded Anthropic to compromise its AI safety policies, which the company refused. Judge Rita Lin criticized the government's actions, stating that branding a company as a potential adversary for disagreeing is unjust. Anthropic's CEO refused to allow the use of their AI for mass surveillance and autonomous weapons, leading to President Trump banning the company from federal agencies. Despite this win, Anthropic still faces legal battles against the government.
Micron has delayed the opening of its New York chipmaking fabs near Clay until late 2033, a five-year setback from the original 2025 timeline. However, the company is accelerating the construction of its Idaho fabs and reallocating CHIPS Act funding to that facility. The delay in New York is attributed to a longer construction phase for the initial fab, pushing back the entire project timeline. Micron has redirected $1.2 billion of federal grant money from New York to Idaho, indicating a strategic reshuffling of project priorities. Despite the delays, Micron remains committed to producing a significant portion of its DRAM output in the U.S.
The EU is falling short of global silicon production targets and is seeking to quadruple semiconductor investment under the Chips Act 2.0. The initial Chips Act allocated $50 billion for semiconductor manufacturing, chip design, and supply chain improvements but is not on track to meet its goals. A Dutch-led coalition, supported by industry groups and major semiconductor manufacturers, aims to revise the Act to provide more targeted support for the EU semiconductor industry. The coalition also seeks faster infrastructure approvals, improved access to skills and finance, and a separate budget exclusively for semiconductor manufacturing and investment.
U.S. Treasury Secretary Scott Bessent raised concerns about Taiwan being the 'world's biggest single point of failure' due to its dominance in producing advanced chips, emphasizing the need to diversify chip production to prevent global disruptions. He suggested relocating 30% to 50% of production to the U.S. and its allies to mitigate risks. While efforts are underway to increase fabrication capacity in the U.S., Bessent's remarks overlook Intel's significant chip production in the U.S. and Samsung's operations in America and South Korea. The focus on chipmaking infrastructure development in the U.S. reflects a strategic and economic priority for the government.
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