Trump Pushes to Repeal Biden-Era CHIPS Act, Citing Ineffectiveness and 'Woke' Provisions

The former president argues tariffs, not subsidies, are the solution to boosting U.S. semiconductor production, raising uncertainty for the program's future.

President Trump has called for the repeal of the CHIPS and Science Act, labeling it a 'horrible' initiative and advocating for tariffs to incentivize domestic semiconductor manufacturing.
The CHIPS Act, signed into law in 2022, aimed to bolster U.S. semiconductor production with $280 billion in funding, but has faced criticism for delays, funding inefficiencies, and diversity-related requirements.
Industry leaders, including members of the Semiconductor Industry Association, have expressed concern about potential clawbacks of funding and the impact on planned U.S. chipmaking facilities.
Trump argues that recent investments, such as TSMC's $165 billion expansion in Arizona, demonstrate that subsidies are unnecessary, though experts note other factors contributed to these decisions.
While some lawmakers, including Sen. Todd Young, defend the act as a significant success, others have suggested reforms to address its perceived shortcomings.