Semiconductor companies that have invested in the U.S., including Samsung Electronics and SK Hynix, are expected to have to prepare in-house childcare facilities on one of the various conditions in order to receive subsidies paid by the U.S. government. According to the New York Times (NYT) and the Washington Post (WP) on the 27th (local time), the U.S. Department of Commerce plans to ask companies that receive subsidies for semiconductor production under the Semiconductor Support Act (CHIPS Act) to provide childcare support for factory employees and workers building factories.The Semiconductor Support Act has set aside a total of 39 billion dollars (about 50 trillion won) in subsidies for companies that build semiconductor factories in the U.S. and plans to receive applications for subsidies from the 28th.
The Commerce Department will require companies applying for subsidies worth more than $150 million to submit child care support plans. This could include setting up in-house daycare centers near factories or construction sites, paying local childcare providers to accommodate more children, or directly subsidizing employees.
“Childcare services should be affordable, easy to use, reliable and high-quality,” said Caitlin Legaki, a spokesman for the Commerce Department. “Under these conditions, companies will be able to exercise sufficient flexibility to reflect the needs of their employees and communities.”
The reason why the Commerce Department demands childcare services is that child care costs act as an obstacle for the Biden administration to re-develop the U.S. manufacturing industry, including semiconductors.
The key is to secure workers to run factories, but many Americans stay at home and take care of their children themselves instead of going to work due to the burden of childcare costs.
Prior to COVID-19, a survey of 35 U.S. states found that the supply of childcare services was about 3 million short of potential demand, but the number of workers in the childcare industry has decreased by about 58,000 (5 percentage points) in the aftermath of COVID-19.
The Biden administration initially tried to include content that eased the burden of childcare costs in last year’s “better reconstruction bill,” but failed to.Commerce Minister Gina Lumondo linked an article in the New York Times to her Twitter account and said, “Unless we secure more labor, the Semiconductor Support Act cannot be successful and it is impossible to secure labor without affordable childcare services. This is why we ask companies that receive subsidies to tell us how they intend to provide affordable childcare services for workers,” he said.
JENNIFER KIM
ASIA JOURNAL
