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Contents • Introduction • The semiconductor industry and stock buybacks • The semiconductor industry and excessive CEO pay • Background on the stock buyback provisions in CHIPS • Conclusion and recommendations Introduction The 2022 CHIPS and Science Act represents a huge opportunity to both bolster domestic semiconductor production and encourage more equitable and sustainable corporate practices. [...] This report zeroes in on the law’s $39 billion in subsidies for semiconductor manufacturing, and specifically on the Biden administration’s decision to grant preferential treatment in the awarding of these subsidies to firms that agree to forgo all stock buybacks for five years. [...] The semiconductor industry and stock buybacks The semiconductor industry has been a major exploiter of stock buybacks, a financial maneuver that artificially inflates the value of company shares (and the value of executive stock-based pay) while siphoning resources from worker wages, R&D, and other productive investments. [...] Conclusion and recommendations The CHIPS for America program is a key pillar of President Biden’s economic agenda, along with the historic and complementary programs the administration is implementing through the Inflation Reduction Act and the Bipartisan Infrastructure Investment and Jobs Act to strengthen public infrastructure and accelerate the transition to a clean energy economy. [...] Formed in the wake of into all things related to the income and wealth gaps the 2008 crisis, we are working to lay the that so divide us, in the United States and foundation for a strong, stable, and ethical financial throughout the world.