Future of CHIPS Act under Trump admin in question

The Biden administration has already awarded tens of billions of dollars under the bipartisan CHIPS and Science Act of 2022 to boost domestic semiconductor manufacturing, but the president Donald Trump The return to the White House has sparked speculation about the future of the projects.

Trump strongly criticized the legislation before the election, saying in an interview on “The Joe Rogan Experience” in October: “That chip deal is so bad.” The president criticized sending billions of taxpayer dollars to “rich companies” and suggested imposing tariffs on foreign-made chips was a better way to shift manufacturing to the United States.

Then-Intel CEO Brian Krzanich speaks during a meeting with President Donald Trump at the White House on February 8, 2017 in Washington. Krzanich announced a $7 billion investment to build a plant in Chandler, Arizona, to create advanced semiconductors. (Chris Kleponis-Pool/Getty Images/Getty Images)

GOP: Speaker of the House Mike Johnson told the press in November that Republicans would “probably” try to repeal the CHIPS Act, but quickly walked back his comments and later said in a statement that the legislation was “not on the agenda to repeal.”

Then last month, Claude Barfield, a senior fellow at the American Enterprise Institute, wrote a scathing note saying: “It’s impossible to know at this point how serious Trump’s opposition to CHIPS funding will be once he takes office. he has often come out during campaigns and not followed up later.”

TRUMP’S “FOREIGN REVENUE SERVICE” IS BUYING FROM IMPORTERS, NOT “FOREIGN SOURCES”.

“In any case,” Barfield continued.[Trump’s] The potential cancellation of CHIPS semiconductor ‘fabs’ funding is both dangerous and delusional.”

Barfield noted that the legislation has received strong support from Republican lawmakers, particularly in states where CHIPS Act funding supports new facilities and jobs.

Howard Lutnick, chairman and CEO of Cantor Fitzgerald and co-chairman of the Trump 2024 transition team, speaks for former U.S. President and Republican presidential candidate Donald Trump at Madison Square Garden in New York on October 27, 2024. (ANGELA WEISS/AFP via Getty Images/Getty Images)

However, the candidate for the Minister of Commerce nominated by Trump. Howard Lutnickrecently told Commerce Secretary Gina Raimondo during a staff meeting that she is committed to moving forward with the plan, according to a Bloomberg report last week, citing people familiar with the matter.

THE CAUSING INTEL SHOULD GET BILLIONS OF TAXPAYER DOLLARS.

For now, at least one chipmaker is confident that the Trump administration will continue to fund its manufacturing projects. Wendell Huang, chief financial officer at Taiwan Semiconductor Manufacturing Co. (TSMC), recently told CNBC that the company expects to still receive the $6.6 billion it is seeking. granted: build three facilities in Arizona.

Intel, the main beneficiary of the CHIPS Act, made sure to mention the program when congratulating Trump on his inauguration on Monday.

Industry watchers expect The CHIPS Act remain in place under Trump 2.0, except for some possible adjustments.

BIDEN’S PRINCIPAL SEMICONDUCTOR PUSH QUIETLY SWAP WITH DEI INITIATIVES

Scott Linchom, vice president of general economics and trade at the Cato Institute, told FOX Business that his guess is there could be some minor changes in enforcement, but he sees major changes as highly unlikely.

President Joe Biden speaks at the Intel Ocotillo Campus in Chandler, Arizona on March 20, 2024. Biden announced $8.5 billion in federal funding from the CHIPS Act to Intel Corp. for semiconductor manufacturing in Arizona.

“If you go back to 2020, when TSMC first made its announcement in Arizona, Trump was a huge cheerleader,” Lincicomi said, noting that the first Trump administration worked behind the scenes to support TSMC’s efforts. but it’s basically the same.”

He pointed to Trump’s goals to shore up semiconductor manufacturing, the national security interest in U.S. chip manufacturing and the fact that chip projects are located in politically important states.

CREATE A FOX BUSINESS WITH A QUICK CLICK HERE!

“Take it all together, I don’t see the bottom line on the CHIPS Act changing at all,” he said. “You may see some changes in how the Biden administration has implemented the law. you know, they had some crazy stuff in there, like mandatory childcare for construction workers, and there’s some DEI stuff…