Will Trump get rid of the CHIPS Act?

In 2022, President Joe Biden signed the CHIPS and Science Act into law to boost the semiconductor industry in the U.S. His administration plans to allot all of the funds before President-elect Donald Trump and his Cabinet take over in January.
Commerce Secretary Gina Raimondo has made it her sole mission to have “almost all of the money obligated by the time we leave,” she told Politico.
“That’s the goal, and I certainly want to have all the major announcements done as it relates to the big, leading-edge companies,” she said.
Some of those funds are headed to Arizona and Utah.
Trump criticized the $280 billion bill while on the campaign trail. “That chip deal is so bad,” he said on the “The Joe Rogan Experience” podcast last month. House Speaker Mike Johnson, R-La., also indicated the House GOP will likely repeal the legislation.
With both chambers of Congress and the White House soon under Republican control, there’s a possibility this could happen.
The legislation includes $52.7 billion in subsidies for U.S. semiconductor production, and billions more for scientific research. On Wednesday, the administration finalized a $1.5 billion grant for GlobalFoundries to expand manufacturing in New York.
Last week, the Commerce Department struck a $6.6 billion deal with the Taiwan Semiconductor Manufacturing Company to set up three plants in Phoenix.
“Two years ago, shortly after I signed the CHIPS & Science Act, I visited Arizona to announce a commitment by TSMC to invest in America,” Biden said.
“On that day, I spoke about how the United States invented semiconductors and used to manufacture nearly 40% of the world’s chips, but now it makes closer to 10% of them and none of the most advanced chips. I came to office determined to change that.”
He called the announcement one of “the most critical milestones yet in the implementation of the bipartisan CHIPS and Science Act.”
In late October, when the presidential campaigns were still in full swing, Phoenix Mayor Kate Gallego, at a rally with former President Bill Clinton, raised concerns about the possibility that her city could lose Taiwan Semiconductor Manufacturing Company’s planned $65 billion investment that would create “high wage jobs and the future of our economy.”
Earlier in August, Texas Instruments entered an agreement with the Commerce Department to direct $1.6 billion from the CHIPS Act to semiconductor manufacturing plants in Texas, as well as one under construction in Lehi, Utah.
“We’re working as hard as we can,” Raimondo told Reuters last week.
At the time of the announcement, outgoing Sen. Mitt Romney, who voted in favor of the CHIPS Act, said this move would cement “Utah’s vital role in our national defense and economic success,” and help the U.S. break away from its dependence on China for chips. Gov. Spencer Cox said he was thrilled about the news that would not only expand Silicon Slope’s offerings but also create jobs.
Utah’s Sen. Mike Lee voted no on the CHIPS Act, as did Sen.-elect John Curtis in the U.S. House.
As Bloomberg reported, the White House is rushing to wrap up deals with chipmakers like Intel, Samsung and Micron Technology.
But Geoffrey Gertz, a senior fellow in the energy, economics and security program at the Center for a New American Security, doesn’t think Republicans are going to repeal this funding. He said he expects to see continued announcements from the Commerce Department in the upcoming weeks.
“I’m skeptical that either the Trump administration or congressional Republicans will make a concerted effort to roll back or alter CHIPS Act funding in any serious way,” Gertz said.
“There’s generally broad, bipartisan support for investing in American manufacturing capabilities in this critical sector, and politically there’s a reason why you rarely see governments withdraw already approved subsidies.”