Trump Calls for End to $52 Billion Chips Act Subsidy Program [View all]

Source: Bloomberg

"President Donald Trump called for ending a bipartisan $52 billion semiconductor subsidy program that’s spurred more than $400 billion in investments from companies like Taiwan Semiconductor Manufacturing Co. and Intel Corp.

“Your Chips Act is a horrible, horrible thing,” the president said in a prime-time address to Congress on Tuesday. Trump implored US House Speaker Mike Johnson to get rid of the legislation and use “whatever is left over” to “reduce debt or any other reason.”

His remarks were met with applause in a chamber that passed the Chips and Science Act less than three years ago. Vice President JD Vance, whose home state of Ohio won a massive Intel project thanks to the law, stood up to show his support for its revocation.

The Chips Act is among the most significant US forays into industrial policy in more than a generation. It set aside $39 billion in grants — plus loans and 25% tax breaks — to revitalize American semiconductor manufacturing, as well as $11 billion for chip research and development. The aim was to reduce reliance on Asia for electronic components that power everything from smartphones to massive data centers.

Read more: https://www.bloomberg.com/news/articles/2025-03-05/trump-calls-for-end-to-52-billion-chips-act-subsidy-program?srnd=homepage-americas