Trump Calls for Repeal of CHIPS Act in Congressional Address

President Donald Trump urged Congress to repeal the CHIPS Act and its subsidies for chipmakers setting up manufacturing facilities in the U.S., arguing that Taiwan Semiconductor Manufacturing Co.'s recent investment demonstrates the act's redundancy, despite the company having previously received a CHIPS Act grant.

"Your CHIPS Act is a horrible, horrible thing. We give hundreds of billions of dollars, and it doesn't mean a thing. They take our money, and they don't spend it," Trump said in his address to a joint session of Congress. "You should get rid of the CHIPS Act, and whatever's left over, Speaker, you should use it to reduce debt. Or any other reason you want to."

Trump slammed the CHIPS Act as a "bad deal" in an October appearance on the "Joe Rogan Experience." He criticized sending billions to "rich companies," stating that the better way to return the manufacture of chips to the U.S. would be to tax chips made abroad.  

In November, House Speaker Mike Johnson, R-La., told reporters that the Republicans "probably will" attempt to repeal the CHIPS Act but then clarified his comments, saying repeal was "not on the agenda."

Passed with bipartisan support through Congress and the signature of President Joe Biden in 2022, it followed a Senate vote of 64-33 and a House vote of 243-187, rejected by a majority of Republicans from both chambers.

The CHIPS Act appropriated $53 billion in federal incentives to promote domestic semiconductor manufacturing, research, and development for advanced chip technologies.
Out of that, $39 billion would go into a Commerce Department program to provide financial assistance to companies constructing new or expanding existing semiconductor facilities.

As for January 23, the CHIPS Program Office, by the Commerce Department National Institute of Standards and Technology, had awarded more than $(36) billion from the CHIPS Act.

Invested along with the CHIPS Act, Semiconductor Industry Association states that nearly $(450) billion worth of private investment activities were announced till August 2024 to boost domestic manufacturing capacity.

TSMC received up to $6.6 billion in grants from the CHIPS Act for its semiconductor manufacturing facilities in Arizona, as TSMC manufactures much of the world's most advanced chips.

Earlier, the company had already announced plans to invest $65 billion to expand its operations in Arizona, while this week it declared another investment of $100 billion to set up additional fabs, an assembling facility, and a research center in the Phoenix area.

The company had earlier revealed plans to invest $65 billion to expand its Arizona operations, followed by a new $100 billion investment this week to establish additional fabs, a packaging facility, and a research center in the Phoenix area.