During a speech to Congress on March 4, Donald Trump unexpectedly criticized the CHIPS Act, a law passed in 2022 to revive American semiconductor manufacturing. Despite bipartisan support and billions in investment, he called the program “horrible” and called on Speaker Mike Johnson to repeal it.
The CHIPS program provided $50 billion for the construction of factories in the United States. After its approval, companies, including Intel, Samsung, and TSMC, began construction in Arizona, New York, and Ohio. The Department of Commerce oversaw the process and distributed subsidies.
However, after Trump's criticism, there were concerns that the administration might reconsider the signed contracts. Some companies turned to lawyers to assess the risks, writes the NYT. Republican Senator Todd Young, who supported CHIPS, asked for an explanation from the White House, because the administration had previously advocated for the program.
Meanwhile, the Trump administration has already begun to cut back on the program. In February, the Commerce Department laid off 40 employees from the CHIPS Office. Interviewer Michael Grimes asked candidates to submit IQ or SAT scores and solve math problems.
Trump has proposed replacing subsidies with tariffs that would make chip production abroad more expensive. He says this has already forced TSMC to increase investment in the U.S. by $100 billion. But experts say the company was planning to expand even before the tariff threat.
Lawyers point out that the tariffs may not affect chip imports, as most of them are shipped to Asia for installation in devices, not directly to the United States.
Despite the uncertainty, most companies are confident in their agreements with the government. However, the future of the CHIPS Act remains in question, and the industry is preparing to fight to save the program.