March 5, 2025 – Former U.S. President Donald Trump has called for the repeal of the CHIPS and Science Act, a landmark 2022 law that allocated $52.7 billion in subsidies to boost domestic semiconductor manufacturing. Instead, Trump proposes redirecting the funds to help pay down the national debt.
During a speech to Congress, Trump criticized the law, calling it a “horrible, horrible thing.” He argued that semiconductor companies are taking government money without accountability, stating, “They take our money, and they don’t spend it… You should get rid of the CHIPS Act and whatever is left over should be used to reduce debt.”
The CHIPS Act: A Key Policy Under Biden
The CHIPS Act was signed into law by then-President Joe Biden in August 2022 as a response to growing concerns about U.S. dependence on foreign semiconductor production—a vital industry for national security and economic stability. The law included:
- $39 billion in direct subsidies for semiconductor manufacturing.
- $75 billion in government-backed loans to support chip production and development.
- Investment incentives to attract global semiconductor leaders to build factories in the U.S.
The Biden administration leveraged these incentives to secure major commitments from semiconductor giants, including:
- Samsung ($4.75 billion in grants) to expand chip production.
- Intel ($7.86 billion in subsidies) to ramp up U.S. semiconductor manufacturing.
- Taiwan Semiconductor Manufacturing Company (TSMC) ($6.6 billion in grants) for new facilities.
- Micron ($6.1 billion in funding) for chip manufacturing projects.
By the end of Biden’s term, more than $33 billion in subsidies had been awarded to companies investing in U.S.-based chip production.
Trump’s Opposition and Industry Concerns
Trump’s recent remarks mark his strongest opposition to the CHIPS Act to date. Instead of offering subsidies, he suggested imposing tariffs on semiconductor imports as a way to encourage companies to establish U.S. factories.
His stance has raised concerns among industry leaders and lawmakers. New York Governor Kathy Hochul pointed out that Micron’s $100 billion investment in Central New York, which is expected to create 50,000 jobs, was directly tied to CHIPS Act incentives.
Arizona Representative Greg Stanton called Trump’s comments a “direct attack” on Arizona’s semiconductor industry, highlighting that TSMC’s $100 billion investment in the state was made possible due to the law.
What’s Next for the CHIPS Act?
Despite Trump’s criticism, semiconductor investments in the U.S. are still moving forward. Just this week, TSMC announced plans for an additional $100 billion investment to build five new chip plants in the United States.
However, sources indicate that the new administration is reviewing past CHIPS Act grants, with some officials concerned that Trump might attempt to invalidate agreements made under Biden.
Additionally, the Commerce Department has already laid off one-third of its staff overseeing CHIPS Act subsidies, signaling potential shifts in how future funding will be handled.
As the debate continues, industry leaders and policymakers will need to navigate the balance between national security, economic competitiveness, and fiscal responsibility in the semiconductor sector.
