{"id":37493,"date":"2025-03-05T11:39:14","date_gmt":"2025-03-05T11:39:14","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/03\/05\/why-is-trump-calling-for-a-repeal-of-the-52-7-billion-chips-act\/"},"modified":"2025-03-05T11:39:14","modified_gmt":"2025-03-05T11:39:14","slug":"why-is-trump-calling-for-a-repeal-of-the-52-7-billion-chips-act","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/03\/05\/why-is-trump-calling-for-a-repeal-of-the-52-7-billion-chips-act\/","title":{"rendered":"Why is Trump calling for a repeal of the $52.7 billion CHIPS Act?"},"content":{"rendered":"
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The future of the CHIPS Act is facing renewed scrutiny as former US President Donald Trump urges lawmakers to repeal the $52.7 billion subsidy program, citing concerns over its impact on federal debt. <\/p>\n

Trump\u2019s remarks, made during a speech to Congress<\/a>, questioned the effectiveness of government-backed incentives, arguing that semiconductor companies should be incentivised through tariffs rather than taxpayer funds. <\/p>\n

His call to scrap the CHIPS Act comes as industry giants like Taiwan Semiconductor Manufacturing Co (TSMC)<\/a>, Intel, and Samsung continue their aggressive US expansion plans, raising concerns about the potential implications for the semiconductor supply chain and national security.<\/p>\n

Trump targets chip subsidies<\/h2>\n

Trump’s speech marked his strongest criticism yet of the CHIPS Act, a bipartisan initiative signed by then-President Joe Biden in August 2022. <\/p>\n

The legislation allocated $39 billion in direct subsidies for semiconductor manufacturing and an additional $75 billion in government lending authority to strengthen domestic production. <\/p>\n

Trump dismissed the program as “horrible,” asserting that companies are benefiting from government funds without meaningful returns for the economy.<\/p>\n

The former president argued that repealing the act would allow Congress to reallocate any remaining funds toward reducing national debt. <\/p>\n

Semiconductor investments at risk<\/h2>\n

Trump\u2019s opposition to the CHIPS Act raises questions about the fate of major semiconductor investments already underway. <\/p>\n

Since the act\u2019s passage, the Biden administration secured commitments from the world\u2019s largest chipmakers to establish or expand manufacturing facilities in the US. <\/p>\n

Key awards include up to $7.86 billion for Intel, $6.6 billion for TSMC<\/a>, and $4.75 billion for Samsung, all aimed at boosting domestic chip production to mitigate reliance on foreign suppliers.<\/p>\n

TSMC, which had already planned a $40 billion investment in Arizona, recently announced an expanded $100 billion commitment to building five additional US chip plants. <\/p>\n

With Trump questioning the validity of government subsidies, concerns are mounting over whether future funding commitments could be reversed. <\/p>\n

Some officials fear that a policy shift under a new administration could lead to the invalidation of grant agreements issued under Biden\u2019s leadership, potentially disrupting supply chain stability and domestic production goals.<\/p>\n

Commerce Department job cuts<\/h2>\n

The uncertainty surrounding the CHIPS Act is already having tangible effects within the US government. <\/p>\n

This week, about one-third of the staff overseeing the $39 billion in manufacturing subsidies at the Commerce Department was laid off, according to sources familiar with the situation. <\/p>\n

The move comes as the Trump administration initiates a sweeping review of federal spending programs, including semiconductor subsidies.<\/p>\n

Commerce Secretary Howard Lutnick has previously expressed support for the CHIPS Act but signalled that all funding agreements signed under Biden would be re-evaluated. <\/p>\n

While he referenced TSMC\u2019s $6.6 billion award at a White House event, he clarified that no new subsidies were currently planned for the company, despite its eligibility for a 25% manufacturing investment tax credit.<\/p>\n

Industry backlash grows<\/h2>\n

The potential repeal of the CHIPS Act has triggered strong reactions from both industry leaders and state officials. <\/p>\n

New York Governor Kathy Hochul defended the legislation, highlighting that it was a key factor in Micron\u2019s $100 billion investment and the creation of 50,000 jobs in central New York. <\/p>\n

Representative Greg Stanton, whose district in Arizona houses some of the largest semiconductor projects, called Trump\u2019s stance a “direct attack” on the state\u2019s chip industry, which has been bolstered by TSMC\u2019s expanding presence.<\/p>\n

As the semiconductor industry braces for potential policy changes, companies and investors are closely watching how legislative debates unfold. <\/p>\n

With billions already committed to US manufacturing, any abrupt policy shift could have significant implications for global chip supply chains, national security, and economic competitiveness.<\/p>\n

The post Why is Trump calling for a repeal of the $52.7 billion CHIPS Act?<\/a> appeared first on Invezz<\/a><\/p>\n

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The future of the CHIPS Act is facing renewed scrutiny as former US President Donald Trump urges lawmakers to repeal the $52.7 billion subsidy program, citing concerns over its impact on federal debt. Trump\u2019s remarks, made during a speech to Congress, questioned the effectiveness of government-backed incentives, arguing that semiconductor companies should be incentivised through <\/p>\n","protected":false},"author":1,"featured_media":37494,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-37493","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing"],"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/37493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=37493"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/37493\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/37494"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=37493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=37493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=37493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}