US President Donald Trump has urged lawmakers to repeal the CHIPS Act, a landmark 2022 law providing $52.7 billion in subsidies for semiconductor chip manufacturing and production. Trump claims that the subsidies do not yield tangible results and instead allow foreign companies to take US funds without spending them.
The CHIPS Act was signed by then-President Joe Biden in August 2022, offering $39 billion in subsidies for US semiconductor manufacturing and related components. The law also provided $75 billion in government lending authority.
Commerce Secretary Howard Lutnick has previously praised the program but expressed a desire to review awards finalized under the previous administration. The program aimed to attract major global semiconductor firms to locate factories in the US, with notable success, including Samsung Electronics’ $4.745 billion award and Taiwan Semiconductor Manufacturing Co’s (TSMC) $6.6 billion grant.
Despite Trump’s criticism, some officials have expressed concerns that he may attempt to invalidate binding grant agreements struck under the Biden administration. Notably, New York Governor Kathy Hochul highlighted the law’s importance in securing a $100 billion investment by TSMC, which plans to build five additional chip facilities in the US over the coming years.
Representatives from Arizona and other affected regions have also criticized Trump’s comments, arguing that the CHIPS Act was instrumental in attracting new businesses and creating jobs.
Source: https://www.reuters.com/technology/trump-wants-kill-527-billion-semiconductor-chips-subsidy-law-2025-03-05