Statecraft Did the CHIPS "Everything Bagel"...Work?
Dec 12, 2025
In this insightful discussion, Mike Schmidt, the inaugural Director of the CHIPS Program Office, Todd Fisher, the Chief Investment Officer, and Sara Meyers, Chief of Staff and COO, unveil the inner workings of the CHIPS Act. They delve into the rapid ramp-up strategies and the complexities of interagency negotiations. The trio shares lessons learned from their experience managing a $39 billion semiconductor incentive program, balancing national security priorities with economic goals, and the crucial negotiations with tech giants like TSMC. Their candid reflections make for a compelling listen!
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Private Equity Pace Versus CHIPS Sprint
- Todd compared CHIPS deal volume to private equity, noting PE firms close only a few big deals per year.
- He recalled being daunted that CHIPS had to close 15–20 major deals in months while starting from zero.
Create Investment Rigor And Sizing Rules
- Build a rigorous investment committee and sizing framework to standardize award decisions.
- Mike described using IRR-based frameworks to size awards and iterating to build organizational muscle.
Contract Style Slowed Final Deals
- U.S. legal contracts differ sharply from other countries' incentives, causing lengthy negotiations over risk allocation.
- Companies expected simpler, assurance-style deals used elsewhere, while U.S. law drove detailed reps, covenants, and clawbacks.