Former US President Donald Trump has urged lawmakers to repeal the $52.7 billion CHIPS and Science Act, arguing that the funds should instead be used to reduce the national debt. He criticized the 2022 law, which was signed by President Joe Biden to boost domestic semiconductor manufacturing and lessen dependence on foreign-made chips.
Speaking before Congress, Trump called the CHIPS Act a wasteful expenditure, claiming that subsidies do not guarantee meaningful returns. He suggested that trade incentives, such as lower tariffs, would be a better approach to encouraging chipmakers to build factories in the US.
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The CHIPS Act provides $39 billion in direct subsidies for semiconductor manufacturing and $75 billion in government-backed loans. So far, over $33 billion in grants have been approved for major companies like Samsung, Intel, TSMC, and Micron. Despite this, Trump’s administration may review agreements made under Biden’s tenure.
New York Governor Kathy Hochul defended the law, citing its role in securing Micron’s $100 billion investment in Central New York, which is expected to create 50,000 jobs. However, Trump’s opposition raises uncertainty about the future of federal support for the semiconductor industry.
