"On the one hand, corporate tax rates will stay low and the cryptocurrency and artificial intelligence sectors can count on less stringent regulations. On the other hand, tech companies are facing higher costs because of tariffs on many goods, the threat of 100% tariffs on semiconductors and new H-1B visa fees. The tech industry has also agreed to unprecedented or highly unusual deals with the government:"
"President Donald Trump said the federal government will get a 15% cut of the sales revenue from Nvidia and AMD's chip sales to China; and the United States has taken a 10% stake in Intel. The potential effects of this mishmash of policies have experts concerned about the nation's long-term ability to attract top talent and lead the AI race."
"Now, the valley has become more tense, said Russell Hancock, the longtime president of Joint Venture Silicon Valley. Hancock said the Silicon Valley of old was so amazing we (ate) gourmet food all day long at our workplace.' Today, he said the valley is being pummeled by inflation and wars and international instability. Workers, many of whom have been ordered back to the office, are worried about AI making them obsolete, he said."
Silicon Valley is receiving a mix of policies that combine lower corporate taxes and looser regulation for cryptocurrency and artificial intelligence with higher costs from tariffs, potential 100% semiconductor duties, and increased H-1B visa fees. The federal government secured unusual financial arrangements with chipmakers, including revenue cuts on sales to China and a 10% stake in Intel. Experts warn that this combination could hinder the nation's ability to attract top talent and maintain leadership in AI. The region’s economic role in California heightens concerns as workers face inflation, geopolitical instability, return-to-office mandates, and fears of job obsolescence from AI.
Read at www.mercurynews.com
Unable to calculate read time
Collection
[
|
...
]