The future of the CHIPS Act under the Trump administration is in question

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

Trump criticized the legislation before the election, saying during his interview on “The Joe Rogan Experience” in October that “that chip deal is very bad.” The president criticized sending billions of taxpayer dollars to “rich corporations” and suggested that imposing tariffs on foreign-made chips would be a better way to move production to the United States.

Republican Party House Speaker Mike Johnson He told the press in November that Republicans “maybe will try” to repeal the CHIPS Act, but quickly walked back his comments and said in a later statement that the legislation “is not on the repeal agenda.”

Then last month, Claude Barfield, a fellow at the American Enterprise Institute, wrote a scathing op-ed, saying, “It is impossible to know at this point how seriously Trump will oppose funding CHIPS when he takes office — he has shown up mostly on the campaign trail and on the campaign trail.” It was not followed up later.”

Trump’s Foreign Revenue Service will collect from importers, not “foreign sources.”

“In any case, (Trump’s) potential cancellation of funding for semiconductor manufacturers is dangerous and illusory,” Barfield continued.

Barfield noted that the legislation had strong support from Republican lawmakers — especially from states where CHIPS Act funding supports new facilities and jobs.

But Trump’s nominee for Secretary of Commerce, Howard LutnickHe recently told outgoing Commerce Secretary Gina Raimondo during a staff meeting that he was committed to moving forward with the program, according to a report from Bloomberg last week, citing people familiar with the matter.

Should struggling Intel receive billions in taxpayer dollars?

For now, at least one chipmaker appears confident that the Trump administration will continue to fund its manufacturing projects at Taiwan Semiconductor Manufacturing Co. (TSMC). Chief Financial Officer Wendell Huang recently told CNBC that the company expects it will still receive The $6.6 billion awarded to him. Construction of 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.

tape	protection	last	It changes	% changes
Intech	Intel Corporation	21.49	+1.83	+9.31%

Industry observers expect Chips law To remain in place under Trump 2.0, except for a few possible modifications.

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Scott Lincecome, vice president of public economics and trade at the Cato Institute, told FOX Business in an interview that his guess is that there may be superficial changes in law enforcement, but he sees major changes as highly unlikely.

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

He pointed to Trump’s goals of moving semiconductor production home, the national security concern related to chip manufacturing in the United States, and the fact that the chip projects are located in politically important states.

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“Taking it all together, I don’t see the final numbers changing in the potato chip law at all,” he said. “You may see some changes in terms of how the Biden administration implements the law — you know, they had crazy things in there, like mandating child care for construction workers, and there are some things related to DEI … and so you may see those things withdrawn.”