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Trump Calls for Repeal of $52.7 Billion CHIPS Act. President Donald Trump urged lawmakers to eliminate the CHIPS and Science Act, a 2022 law providing $52.7 billion in subsidies for semiconductor manufacturing, suggesting the funds should be redirected to reduce national debt. Speaking before Congress, Trump criticized the legislation as a "horrible, horrible thing," claiming chipmakers take U.S. money without making meaningful investments. The CHIPS Act, signed by former President Joe Biden, includes $39 billion in direct subsidies and $75 billion in government lending to bolster the U.S. semiconductor industry. Trump argued that semiconductor firms would build U.S. factories without subsidies, suggesting that favorable trade conditions would be enough incentive. Commerce Secretary Howard Lutnick has defended the program but acknowledged that the Trump administration is reviewing grants awarded under Biden. In the final months of Biden’s presidency, the Commerce Department approved over $33 billion in chip subsidies, including grants for Samsung, Intel, TSMC, and Micron. Some officials worry Trump may try to overturn binding agreements made under Biden, raising uncertainty for ongoing semiconductor investments. New York Governor Kathy Hochul warned that repealing the CHIPS Act could jeopardiz. Micron’s planned $100 billion investment and 50,000 new jobs in Central New York. Despite Trump’s opposition, TSMC recently announced plans to invest an additional $100 billion in U.S. chip manufacturing, constructing five new facilities. The Commerce Department’s semiconductor subsidies office has already begun staff reductions, as the Trump administration reassesses projects funded under the CHIPS Act.
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