In his first address to a joint session of Congress since taking office in January 2025, President Donald Trump called for the repeal of the CHIPS and Science Act, a landmark bipartisan bill passed during Joe Biden’s presidency. Speaking before lawmakers, Trump criticized the act as a “horrible, horrible thing” and urged Congress to eliminate it, stating, “You should get rid of the CHIPS Act, and whatever is left over, Mr. Speaker, you should use it to reduce debt or any other reason you want to.”
The CHIPS Act, signed into law in 2022, allocated $52 billion in subsidies to semiconductor manufacturers in an effort to boost domestic chip production and reduce reliance on foreign supply chains. An additional $75 billion in low-interest loans was also made available to support industry growth. Major beneficiaries of the act include Intel, which secured the largest award at $7.86 billion, as well as TSMC, Micron, Samsung, Texas Instruments, and GlobalFoundries.
Despite Trump’s opposition, the government has already awarded $33 billion in signed contracts, making it difficult to unwind the subsidies without legal or financial repercussions. The Biden administration ensured that much of the funding was finalized before leaving office, though disbursements are structured in a way that companies receive payments in tranches upon meeting certain milestones.
Intel, for example, has only received $2.2 billion of its expected $7.86 billion as of January 2025, expressing frustration over delays in CHIPS Act payments. The uncertainty surrounding the program’s future has raised concerns within the semiconductor industry, which had been counting on federal support to expand domestic production.
Trump’s opposition to the subsidies had been rumored during his campaign, but his latest remarks confirm his stance. Instead of direct government funding, he favors imposing tariffs to encourage chipmakers to establish manufacturing operations in the United States. His administration is expected to push for a policy shift that moves away from subsidies and toward trade measures to boost domestic semiconductor production.
Stay tuned to DC Brief for further updates on this story and other technology developments.
