Lawfare Daily: Mike Schmidt Talks CHIPS and U.S. Industrial Policy
Summary
Peter Harrell interviews Mike Schmidt, former director of the CHIPS program, on how the act successfully reshaped global semiconductor supply chains through grants and tax credits. They discuss the strategic choice of subsidies over equity or loans, the importance of vertical resilience, and why congressional mandates offer better stability than flexible executive funds. Schmidt also outlines frameworks for selecting future industrial policy sectors and the necessity of allied cooperation against China’s manufacturing dominance.
Topics discussed
Introduction: Mike Schmidt and the Chips Act context
Did the industry need the Chips Act? AI and onshoring
Industrial policy tools: Grants vs. Loans
The role of government equity stakes in industrial policy
Demand-side incentives and supplier diversity
Export controls and coercive industrial policy
Institutional design for US industrial policy
Criteria for selecting strategic sectors
Vertical supply chain resilience and packaging
Onshoring vs. Friendshoring: The ASML example
Implementation hurdles: Procurement, NEPA, and contracts
Advice for aspiring industrial policy professionals
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