The CHIPS Act, signed into law in August 2022, allocates $52.7 billion in subsidies for semiconductor manufacturing in the U.S. and aims to enhance domestic production and research.

This legislation represents a significant shift in U.S. industrial policy, providing $39 billion in grants and loans along with tax incentives to bolster the semiconductor sector.

In a recent speech to Congress on March 4, 2025, President Donald Trump called for the repeal of the CHIPS Act, criticizing it for wasting taxpayer money on corporate subsidies.

Some Republicans have expressed concerns that repealing the CHIPS Act could undermine U.S. competitiveness against China and other nations in the tech sector.

The proposal has elicited mixed reactions from lawmakers and industry leaders, many of whom view the CHIPS Act as essential for maintaining U.S. competitiveness in technology.

Opposition to Trump's repeal proposal has emerged from various officials, including New York Governor Kathy Hochul, who emphasized the act's role in attracting significant investments and creating jobs.

Senators Todd Young and John Cornyn defended the CHIPS Act, highlighting its importance in strengthening U.S. supply chains and enhancing national security.

Despite Trump's call for repeal, Republican lawmakers appear hesitant to dismantle the legislation, recognizing its widespread economic impact and bipartisan support.

Arizona Representative Greg Stanton described Trump's comments as a direct threat to the state's semiconductor industry and its workforce.

In contrast to Trump's stance, TSMC recently announced a substantial increase in its investment in U.S. chip manufacturing, demonstrating ongoing confidence in the semiconductor sector.

While House Speaker Mike Johnson has shown some support for Trump's position, many Republican senators have indicated that they are not prioritizing the repeal of the CHIPS Act.

Trump's comments have raised eyebrows given the growing importance of semiconductor technology in the economy and national security, especially amid ongoing discussions about supply chains.