Note also that the CHIPS act directly flouts WTO regulations. As repected Stanford law teacher Alan Sykes pointed out:

Under WTO law, the Chips Act is a “domestic subsidy” because it is targeted at a particular industry and makes financial contributions to that industry through direct payments and tax subsidies. Such subsidies are not prohibited but are potentially “actionable” at the WTO if they cause injury to foreign producers of semiconductors seeking to sell into the U.S. market or some third country market in competition with subsidized products. In addition, if chips produced by subsidized facilities or firms are exported, they are potentially subject to “countervailing duties” imposed by the importing country if their presence in the export market causes “material injury” to producers in that market.

As the CHIPS act is expressly in the interests of decreasing foreign import to the US, and thus damaging competitive semi-condutor manufacturers wishing to sell in the US or other countries, such as China and Chinese Taipei, it is in violation of WTO regulations.

Article corroborating this from L*beral news source:

  • @redtea@lemmygrad.ml
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    92 years ago

    The US couldv argue that Taiwanese semiconductor companies lost business because of China’s actions (following Pelosi’s visit, but that won’t be brought up), not because of the domestic subsidies, etc.

    The question is, did a certain US official buy shares in US semiconductor companies before making an inflammatory visit to a country that manufactures lots of semiconductors?

    • @B0rodin@lemmygrad.mlOP
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      2 years ago

      Maybe, but remember that this will likely also affect other semiconductor companies from other regions apart from Taipei, and in other semiconductor producing nations from the PRC, by which point lowest common denominator is US. Not that L*berals will be able to apply such a broad world view, but still…

      As far as insider trading is concerned, Pelosi certainly planned for a short term slump in the semi-conductor based industries after her visit:

      I think that she will likely wait for US semi-conductor based industries to level out and - just before the windfall from the CHIPS act comes out - will buy them again to maximise profits. “Capitalist Innovation” at its finest, everyone!