Overview

• President Trump called for repealing the CHIPS Act, a 2022 bipartisan law providing $52.7 billion in subsidies to support U.S. semiconductor manufacturing.
• Trump suggested reallocating remaining CHIPS Act funds to reduce the national debt, which currently exceeds $36.2 trillion, according to the Treasury Department.
• The CHIPS Act has been pivotal in attracting major investments, including Taiwan Semiconductor Manufacturing Company's (TSMC) $165 billion expansion in Arizona, supported by $1.5 billion in subsidies so far.
• Arizona Democrats and other lawmakers criticized Trump's proposal, citing the legislation's role in creating thousands of jobs and bolstering the domestic semiconductor supply chain.
• While repealing the CHIPS Act would require congressional approval, Trump has already reduced its impact by cutting hundreds of staff from federal programs overseeing semiconductor funding.