3 Joint Venture Example

Semiconductor Joint Ventures (CHIPS Act Era)

In 2022, the U.S. government passed the CHIPS and Science Act to boost computer chip production in the U.S.

Instead of forcing companies, the government used billions in incentives (grants, tax credits, subsidies) to strongly encourage partnerships and joint ventures.

Real Example:

• Intel partnered with Brookfield Asset Management
  → They created a joint investment structure to fund semiconductor factories in Arizona
• Taiwan Semiconductor Manufacturing Company has also partnered with U.S. suppliers and received government incentives to build plants in the U.S.

Why the U.S. Government Pushed This

Officials strongly encouraged these joint efforts to:

• Reduce reliance on foreign chips (especially from Asia)
• Strengthen national security
• Create U.S. jobs
• Share the massive cost of building chip factories

Simple Explanation

Instead of saying:

“You MUST partner with someone,”

the U.S. government basically said:

“If you partner up and build here, we’ll give you a LOT of money to help.”

Is this really “encouragement,” or is it pressure with money attached?