The Biden administration has announced a $6.6 billion grant to a semiconductor project led by Brian Harrison, the former CEO of the infamous Solyndra. This decision, announced by Secretary of Commerce Gina Raimondo, claims it will bolster Taiwan Semiconductor Manufacturing Co. (TSMC) in its effort to expand semiconductor manufacturing in Phoenix, Arizona. Harrison is known for his tenure at Solyndra during its high-profile bankruptcy and subsequent scandal.
The grant is part of the CHIPS and Science Act, a legislative effort by the Biden administration to revive U.S. semiconductor manufacturing and reduce reliance on foreign suppliers. Biden claims the “investment” is vital for “securing America’s technological future.” The administration claims the grant will create more than 25,000 brand new construction and manufacturing jobs in Arizona. Time will tell.
NEW: Biden Admin Awards $6.6 Billion to Project Run By Ex-Solyndra CEOhttps://t.co/X61JQmafKb
— Alana Goodman (@alanagoodman) April 8, 2024
However, Harrison’s involvement, given his history with Solyndra — a symbol of government waste and mismanagement — has raised serious questions about the Biden administration’s criteria for grant recipients. Critics have expressed concerns that this represents yet another instance of Democrats’ crony capitalism, where government connections appear to influence the allocation of taxpayer dollars.Harrison oversaw Solyndra’s infamous bankruptcy soon after the firm received nearly $600 million in unsecured loans from the Obama administration. That proceeding led to discovery of Solyndra providing misleading financial information to the Department of Energy to induce the government to make the loans.
Critics of the deal also point out the larger implications of reviving and expanding the Department of Energy’s loan programs office. That bureaucracy is now loaded with a new massive $400 billion budget for “green energy loans.” The numerous repeat offenders from the Biden administration involved in this latest sweetheart deal raise serious concerns over the obvious conflicts of interest at play.
The controversy surrounding this latest massive grant to a political ally serves as a reminder of the importance of transparency, accountability, and the careful selection of partners in public-private ventures. While the ultimate goal of securing America’s technological future is shared by many, the path to achieving it must be paved with decisions that inspire confidence, not doubt, in the stewardship of taxpayer dollars.
