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2h ago

Commerce Voids $7.4 Billion Natcast Deal, Shifts Chip Center Operations to NIST

The department says the Biden-era nonprofit ran afoul of the Government Corporation Control Act, triggering a move to direct federal oversight.

Semiconductor chips are seen on a circuit board of a computer in this illustration picture created on February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo
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Overview

  • Effective immediately, the National Institute of Standards and Technology is taking over operation of the National Semiconductor Technology Center.
  • Commerce declared the January 16, 2025 agreement with Natcast void and rescinded up to $7.4 billion in advance funding that was expected to run through 2034.
  • Officials concluded Natcast was unlawfully established to act on the government’s behalf without specific statutory authorization under the Government Corporation Control Act.
  • The department alleges Biden-era officials handpicked a friendly selection committee, populated Natcast leadership with former administration figures, and removed a standard termination‑for‑convenience clause.
  • Commerce announced plans to reform NSTC operations for statutory compliance and transparency and said it reserves the right to pursue legal remedies against Natcast.