US President Donald Trump’s intention to repeal the CHIPS and Science Act has sparked uncertainty over the semiconductor subsidy program. Approximately 80% of staff at the CHIPS Program Office (CPO), which oversees subsidies for semiconductor manufacturing, have been dismissed or urged to resign.
The CPO, created three years ago, was led by former SK hynix executive Dan Kim, who resigned last week. His departure has raised concerns over whether subsidies will be distributed as planned for Samsung Electronics and SK hynix. The $52.7 billion CHIPS Act aims to support the US semiconductor industry, with $39 billion allocated for manufacturing facilities.
The Biden administration had appointed Michael Schmidt to lead the CPO, but staff reductions are being overseen by Elon Musk, who is leading a federal bureaucracy restructuring. Samsung Electronics has not received its subsidies yet, despite approving $4.745 billion under the previous Biden administration. SK hynix’s facility remains in the pre-construction phase and has also not received funding.
The Trump administration’s plans to repeal the CHIPS Act could affect the final amounts of the subsidies, further complicating the situation. The Biden administration had aimed to support key industries, but the Trump administration’s actions are casting doubt on its success.
Source: https://www.chosun.com/english/industry-en/2025/03/31/E7Q62CYPFRGZHCTWX5A3V34WXI