“subsidized firms must provide “high-quality childcare for plant workers.” They can even divert some of the subsidies to build child care centers and hire providers—activities that do little to increase the supply of microchips. Companies will also be required to do all sorts of financial disclosures and share part of any unanticipated profits with the government. Preference for funding will be given to companies that promise not to buy back stock. The New York Times cleverly named this approach the “Chips and Strings.”
These strings will significantly undermine chip manufacturing by increasing production costs. For instance, when the administration says high-quality child care, it really means more expensive child care because of requirements that caregivers be college-educated and such. Building those child care and chip factories will be subjected to Buy American and environmental requirements, Davis-Bacon pay requirements, and minority and women material sourcing requirements, along with pressure to be more open to the demands of labor unions. “
https://reason.com/2023/03/02/the-government-is-subsidizing-microchip-firms-while-making-it-more-expensive-to-produce-microchips/