Overview

• 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.