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Trump prepares to change U.S. CHIPS Act conditions, sources say
The Biden administration is reportedly preparing to renegotiate conditions of the U.S. CHIPS and Science Act, delaying some semiconductor disbursements initially set for 2022, while reviewing projects awarded to enhance domestic semiconductor production with $39 billion in subsidies.
Key points
- The White House is seeking to renegotiate awards under the U.S. CHIPS and Science Act.
- Delays are indicated for some semiconductor disbursements, causing potential disruptions.
- The administration is reviewing projects that received support aimed at increasing domestic semiconductor output.
- Approximately $39 billion in subsidies are involved under the Act.
- The full extent of changes and their impact on finalized agreements is unclear.
Why it matters
- The CHIPS and Science Act was originally implemented to strengthen U.S. competitiveness and reduce reliance on foreign semiconductor supply chains, especially in response to global shortages.
- These actions align with broader trends in 2025 focusing on domestic manufacturing and supply chain resilience in technology and semiconductor industries.
The Biden administration's potential renegotiation of CHIPS Act conditions reflects ongoing efforts to adapt to current economic challenges and enhance U.S. semiconductor capabilities, ensuring strategic objectives are met.