
The future of the U. S.CHIPS Act appears uncertain as recent developments suggest that its support may falter under the current administration. Concerns have arisen that key figures instrumental in the Act’s formation have either departed or been dismissed from their roles, leading to speculation about its viability.
Trump Critiques CHIPS Act, Calls for Its Reassessment
Originally enacted during the Biden administration, the CHIPS Act was designed to reposition the U. S.as a leader in semiconductor manufacturing. The initiative aimed to revitalize domestic chip production, attracting major players such as TSMC and Intel to establish new manufacturing facilities in the United States. However, former President Donald Trump has expressed skepticism towards the effectiveness of the legislation, suggesting that companies have received “Biden money”without delivering significant benefits to the economy. A report by Chosun indicates that there may be an imminent end to the CHIPS Act.
According to Korean media sources, the Commerce Department’s Chip Program Office (CPO) has faced substantial staff reductions, with over 120 employees, out of 15 in leadership positions, either laid off or resigning. This shift raises questions about the program’s future effectiveness and commitment.

To delve deeper, the CHIPS Act encompasses a robust package of incentives totaling $280 billion, which includes $52 billion earmarked for federal investments and tax incentives geared towards fostering domestic semiconductor research, design, and manufacturing. Major beneficiaries of this funding include companies like Intel and TSMC, both of which have made significant commitments to U. S.production. Additionally, Samsung has announced plans for a facility in Texas, further broadening the Act’s impact on the industry.
The ongoing layoffs at the CPO have been attributed to restructuring efforts being led by Elon Musk’s DOGE division, which aims to reevaluate federal spending priorities. While the ultimate fate of the CHIPS Act remains unclear, Trump’s comments suggest a potential scaling back of subsidies or even a complete dismissal of the program. Stakeholders in the semiconductor industry will be watching closely as developments unfold.
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