Biden Bars Companies From Using US Chips Act Cash for Buybacks
- Commerce Department lays out rules for getting incentive money
- Companies will ‘work harder than they thought’ to receive cash
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The Biden administration warned companies lining up for funding from the US Chips and Science Act that the money will come with major strings attached, including restrictions on investing in other countries and a limit on much-prized stock buybacks.
The Commerce Department released the rules Tuesday ahead of doling out $39 billion in incentives, which are aimed at helping pay for semiconductor factories in the US. Some of the biggest chip producers such as Intel Corp. had lobbied for the funding package, which passed last year, but now they’re learning the consequences and risks of taking the cash.