It's 'extremely unlikely' Trump or Harris will repeal CHIPS Act

The US presidential election has brought the CHIPS Act into focus as artificial intelligence (AI) weighs the impacts of Vice President Kamala Harris or former President Donald Trump's White House. Rhodium Group director Reva Goujon joins Julie Hyman and Josh Lipton on Market Domination to break down her expectations for the CHIPS Act under the next presidential administration. "The CHIPS Act is extremely unlikely to be repealed. There is bipartisan support for industrial policy, especially for chips, but it comes down to results," Goujon tells Yahoo Finance, noting that the "stakes are high" for Intel (INTC) and Taiwan Semiconductor Manufacturing Company (TSM) specifically. "One important thing to keep in mind is that we've actually seen some pragmatism out of the Biden administration in realizing that these chip fabs are not going to be built on this kind of timeline if they don't start accelerating things. And so there have already been compromises, for example, on environmental reviews, where fabs are not going to need National Environmental Policy Act reviews, and that's all meant to kind of accelerate this process. So, in terms of trying to shore up the CHIPS Act, I would see those kinds of provisions being targeted but not the overall strategic goal of getting funding behind bolstering chip manufacturing in the United States," the strategist says. She adds that "technology controls targeting China are going to be a major feature of either administration," with Trump saying he'll instate hefty tariffs while Harris may be more of the same, maintaining the status quo of the Biden administration. Watch the video above for more on how Trump or Harris could change the CHIPS Act, how it could affect geopolitical tensions with China and the effect of the AI trade. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Naomi Buchanan.