US attaches childcare strings to $52-billion subsidy for chip makers

The Biden administration on Tuesday said it will require companies winning funds from its $52 billion US semiconductor manufacturing and research program to share excess profits and explain how they plan to provide affordable childcare.

The condition marks an unusual use of the federal government’s powers. Officials said the rule was intended to address a worker shortage.

The Commerce Department on Tuesday is releasing its plans to begin accepting applications in late June for a $39 billion manufacturing subsidy program. The law also creates a 25 per cent investment tax credit for building chip plants estimated to be worth $24 billion.

Recipients who