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3mo ago

Trump Administration Tightens Terms on CHIPS Act Grants, TSMC Boosts U.S. Investment

Revised agreements aim to boost private investment in U.S. chip plants as the administration targets capturing over half of global AI computing capacity.

Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo
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U.S. Commerce Secretary Howard Lutnick attends a Senate committee hearing at the U.S. Capitol in Washington on June 4, 2025 in this photo released by EPA. (Yonhap)
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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.