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Why US and EU support for chipmakers is bad news for FDI in Ireland

David Chance


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The latest convert to subsidies is the US where President Joe Biden’s administration recently signed off on a $52bn package of inducements for companies. Photo: Jemal Countess/UPI/Bloomberg

The latest convert to subsidies is the US where President Joe Biden’s administration recently signed off on a $52bn package of inducements for companies. Photo: Jemal Countess/UPI/Bloomberg

The latest convert to subsidies is the US where President Joe Biden’s administration recently signed off on a $52bn package of inducements for companies. Photo: Jemal Countess/UPI/Bloomberg

Governments across the world are getting ready to throw hundreds of billions of euro in state subsidies at chip manufacturers in a move that will raise prices, enrich incumbent firms and eventually disadvantage smaller countries like Ireland in the race for investment.

Perhaps it shouldn’t come as a surprise after the pandemic brought supply chains to a halt. Semiconductors are the building blocks of the modern economy and sit at the heart of everything from cars to computers, but that doesn’t justify these huge state handouts.


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