The Week That Was

The CHIPS Act continues to drive big investments, with $1.4 billion announced for advanced packaging and R&D. While these investments are exciting, reports suggest the cost per job could be as high as $185,000, raising concerns about value for taxpayers.

Over in Taiwan, SPIL’s new factory is pushing the boundaries of AI chip innovation, and Nvidia’s CEO emphasized Taiwan’s critical role in the AI supply chain. Meanwhile, Intel remains a key player in U.S. efforts to boost domestic chip production, a cornerstone of national security strategy.

There’s also good news for U.S. manufacturing. SIA applauded recent CHIPS Act incentives aimed at expanding Analog Devices and Coherent’s facilities, which will create jobs and strengthen the U.S. semiconductor supply chain. On the flip side, industry groups have criticized new export restrictions requiring licenses for AI chip sales to certain countries, warning these rules could harm U.S. companies and benefit global competitors.

On the job front, Microsoft is making performance-based layoffs as part of a broader trend among tech giants like Google and Amazon to optimize operations. And then there’s Klarna—its CEO made headlines by admitting he’s “gloomy” about how fast AI is advancing, saying it could soon replace even high-level roles like his. Klarna has already leaned heavily on AI, cutting 22% of its workforce and automating core tasks. This raises big questions about how the industry—and the workforce—will adapt as AI reshapes the future of work.

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