Will the US CHIPS Act Soon Be Repealed?

General news News Tech Tech News 04/02/2025

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TECH NEWS – The Biden administration’s subsidy program may be shut down to be replaced by a new policy (trying to bring chip manufacturing to America by force).

The people behind the CHIPS Act have either left or been fired by DOGE (the government’s efficiency department). The law, introduced under the Biden administration, was seen as the first step for the US to regain its leading position in chip manufacturing. The main incentive was to give America a greater role in manufacturing. As a result, companies like TSMC, Intel and many others will open (or have already opened) new facilities in the region. However, Trump was not at all enthusiastic about the initiative, saying that the companies would only get Biden’s money. And now Chosun has reported that the law may soon be repealed.

According to the South Korean publication, more than 120 of the 150 employees of the CPO, the trade ministry office in charge of the chip program, have been fired or resigned. One of the most notable departures is Dan Kim. A former vice president of SK Hynix, he joined the CPO three years ago as chief economist. His departure suggests that the financial incentives have had no effect at all on South Korean companies (SK Hynix, Samsung), which jeopardizes the future of the CHIPS Act.

The CHIPS Act is an incentive for companies in the semiconductor industry. It includes $280 billion in funding, including $52 billion in federal investment and tax credits for domestic chip research, design and manufacturing provisions. One of the main beneficiaries was Intel and TSMC, both of which have shown a massive commitment to U.S. manufacturing, but they were joined by, for example, Samsung, which also benefited from the money after announcing a facility in Texas.

The layoffs at the CPO were linked to Elon Musk and the DOGE (he is the head of this government department that works on restructuring federal spending). Although the repeal of the CHIPS Act is not yet certain, the future of the incentive certainly seems uncertain for the time being, and judging by Trump’s statements, either the subsidy rates will be drastically reduced or the law will be repealed altogether…

Source: WCCFTech

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Angyal Anikó

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