Team Trump seeks to renegotiate US CHIPS Act
The White House is reviewing projects awarded under 2022 law, which is meant to bolster US domestic semiconductor output and includes USD 39 billion worth of subsidies, sources told Reuters.
The Trump administration may renegotiate U.S. CHIPS and Science Act awards, according to a Reuters report, and the White House has already indicated that some semiconductor disbursements awarded under the 2022 law may be delayed.
Trump’s team is reviewing projects awarded under 2022 law, which is meant to bolster US domestic semiconductor output and includes USD 39 billion worth of subsidies, sources told Reuters.
While some deals are likely to be renegotiated, how agreements that are already finalized would be impacted is not clear.
“The CHIPS Program Office has told us that certain conditions that do not align with President (Donald) Trump’s executive orders and policies are now under review for all CHIPS Direct Funding Agreements,” GlobalWafers spokesperson Leah Peng told Reuters.
Sources said the new administration is concerned about several terms linked to the subsidies, including providing affordable childcare to factory workers.
Struggling chip giant Intel has already received two payments totaling USD 2.2 billion under the CHIPS Act. TSMC, which invests in the US, has reportedly received USD 1.5 billion.
President Trump has pledged to put tariffs on semiconductors. TSMC makes most of the world’s most advanced chips and it will take many years for the US to stop importing these chips from the Taiwanese company.
