Overview
- Commerce Secretary Howard Lutnick told Senate appropriators that some Biden-era subsidies seemed overly generous and that renegotiations have improved deal terms or eliminated unwarranted awards.
- The administration renegotiated TSMC’s $6 billion Chips Act grant to secure a $100 billion investment pledge in U.S. manufacturing.
- Samsung’s $4.74 billion award for Texas and SK Hynix’s $450 million grant for Indiana facilities are under review, prompting uncertainty among South Korean chipmakers.
- Ongoing renegotiations and potential funding delays reflect a push for greater taxpayer returns and strengthened domestic semiconductor production capacity.
- Lutnick also highlighted China’s limited advanced chip output and backed tighter export controls alongside CHIPS Act revisions to safeguard America’s AI computing leadership.