This interview is a crossposting from Commonplace, a publication from American Compass. American Compass is a think tank focused on developing the conservative economic agenda.
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The CHIPS Act was billed as a once-in-a-generation effort to rebuild America’s manufacturing base in a strategically vital industry. But turning legislation into functioning factories and good paying jobs requires far more than slogans about “onshoring” or wish-casting. It demands a state-sponsored investment outside of America’s typical comfort zone.
Mike Schmidt, former director of the CHIPS Program Office and co-author of Factory Settings, joins Oren Cass, Founder and Chief Economist at American Compass, to discuss what it actually took to stand up the largest industrial policy initiative in decades. They explore how the government negotiated with global chipmakers, why grants and tax credits were combined, what critics missed in the “everything bagel” debate, and how permitting, labor, and geopolitical risk shaped their efforts. They close by discussing how we’ll know if the CHIPS Act ultimately succeeds and the way the US should think about future reindustrialization efforts.
