US to introduce 'guardrails' to ensure that companies benefitting from CHIPS Act funding spend it where they should be

The US government is soon to begin awarding up to $52 billion in subsidies for domestic semiconductor manufacturing. The funding is a part of the CHIPS and Science Act that President Joe Biden signed into law in August 2022. But before the funds are given, the US Commerce Department is introducing rules to ensure beneficiaries of the funding don't spend it elsewhere, and it particularly doesn't want it feeding back to China.

According to a report by Reuters, the proposal seeks to prevent...