Biden’s $100 Billion Chip Bet Caught Up in Arizona Union Showdown

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Biden’s $100 Billion Chip Bet Caught Up in Arizona Union Showdown
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High-stakes labor showdowns are putting President Joe Biden’s administration in between the companies central to his economic vision and the workers he’s promised will reap the rewards of a US manufacturing renaissance.

It’s not just in the United Auto Workers strike, where Biden took a side on Tuesday by joining the picket line in Belleville, Michigan. One of the key issues in the union’s clash with the Big Three automakers is pay and workplace conditions at a slew of new electric-vehicle battery plants that will enable the White House’s climate and industrial goals.

“We’re just disappointed that we’re not any closer today than we were when we started talking to them a few weeks ago,” said spokesperson Brandi Devlin. The mess underscores how Biden’s industrial policy push — the country’s most significant since World War II — doesn’t always tidily fit together with his efforts to spur a labor revival.

“Intel’s long-standing partnerships within the state have allowed us to successfully attract and retain the necessary workforce to complete our projects safely and on schedule,” said a spokesperson for Intel, which produces chips that lag behind its Taiwanese peer. Intel declined to comment on whether it has a formal project labor agreement like the one unions are seeking with TSMC.

TSMC said in its statement that the company’s “recordable safety incident rate is nearly 80% lower than nationally reported figures, and its lost-time incident rate is nearly 96% lower,” citing safety data from the Arizona Division of Occupational Safety and Health, or ADOSH, and US Bureau of Labor Statistics.

PLAs are encouraged but not required to tap the subsidy pool. But if a project has one, companies should expect award language holding them accountable to those commitments, a senior Commerce official said without commenting on TSMC in particular. Firms will be subject to detailed metrics and reporting requirements, the department said, as well as federal employment laws.

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