Trump administration reportedly re-evaluating CHIPS Act awards
The White House is reportedly reworking the U.S. CHIPS and Science Act, reviewing previously awarded semiconductor subsidies and potentially renegotiating deals, according to sources speaking to Reuters.
The $39 billion CHIPS Act, passed in 2022, was designed to boost domestic semiconductor manufacturing through federal grants. However, the Trump administration is now evaluating contract terms, particularly those added under President Biden, and delaying some disbursements as a result.
Why the review?
According to sources familiar with the discussions, the administration is concerned about certain conditions tied to the funding, including:
Unionized labor requirements for building chip factories
Affordable childcare provisions for semiconductor workers
Companies expanding overseas after receiving U.S. subsidies
One source noted frustration over CHIPS Act recipients investing in China, despite the law allowing some foreign expansion. Intel, for example, announced a $300 million investment in China months after receiving $2.2 billion in CHIPS Act funding.
Companies react
Taiwan’s GlobalWafers, which was awarded $406 million for projects in Texas and Missouri, confirmed that the CHIPS Program Office is reassessing funding agreements to align with Trump’s policies. However, the company has not been directly notified of any changes.
A spokesperson for TSMC, which received $1.5 billion before Trump took office, declined to comment on possible renegotiations but said they are in contact with the CHIPS Office. Other major semiconductor firms, including Samsung, SK Hynix, and Micron, have remained silent on the issue.
Industry concerns
The Semiconductor Industry Association, a key trade group, has started gathering feedback on how the CHIPS program could be improved. David Isaacs, the group’s VP of government affairs, warned that any disruptions to funding could slow the U.S.’s efforts to regain chipmaking dominance:
“It’s important both the manufacturing incentives and research programs proceed without disruption,” Isaacs said.
What’s next?
With the Trump administration prioritizing "America First" policies, the CHIPS Act renegotiation could result in:
Stricter limits on overseas expansions for recipients
Removal or revision of labor and social policy requirements
Further delays in semiconductor subsidy disbursements
While no formal action has been confirmed, the White House’s move signals a potential shift in U.S. semiconductor policy, one that could reshape how companies receive and use CHIPS Act funding.
