Trump threatens to abolish the chip law: They took the money but didn't spend it, better to use it to pay off debt
Trump stated yesterday that U.S. lawmakers should repeal the CHIPS Act, which provides $52.7 billion in subsidies for semiconductor manufacturing and production, and use that funding to pay down debt. Some officials expressed concerns and criticisms regarding Trump's remarks
According to CCTV News, Trump delivered a speech at a joint session of Congress on Tuesday local time, themed "The Rebirth of the American Dream," which mainly included four parts: the achievements made domestically and internationally during Trump's second term, the contributions of the Trump administration to the economy, Trump's renewed call for Congress to pass additional border security funding, and Trump's global peace plan.
Trump stated that U.S. lawmakers should repeal the CHIPS Act, which provides $52.7 billion in subsidies for semiconductor manufacturing and production, and use that money to pay down debt.
Trump remarked, "We don't need to give them money," and suggested that simply not imposing new tariffs would be enough to encourage companies to build factories in the U.S.:
"Your CHIPS Act is a terrible thing; we invested hundreds of billions, but it means nothing. They took our money but didn't spend it. ... You should repeal the CHIPS Act, and then, Mr. Speaker, you should use the remaining funds to reduce the debt."
This act was signed into law by the Biden administration in August 2022, providing $39 billion in subsidies for U.S. semiconductor manufacturing and related industries, and granting the government $75 billion in loan authority.
In the final weeks of Biden's presidency, the U.S. Department of Commerce ultimately approved over $33 billion in subsidies, including $4.745 billion to South Korea's Samsung Electronics, up to $7.86 billion to Intel, $6.6 billion to TSMC, and $6.1 billion to Micron Technology.
In response to Trump's remarks, some officials expressed concerns and criticisms.
New York Governor Kathy Hochul stated yesterday:
"This act is the reason Micron is investing $100 billion in Central New York and creating 50,000 jobs, while Trump just said he wants to repeal it."
U.S. Congressman Greg Stanton also stated:
"Trump's remarks are a direct attack on Arizona's semiconductor industry and the thousands of Arizona workers; TSMC's $100 billion investment would not have happened without this act."