Tech war: Trump administration reviews terms underpinning Chips Act awards, sources say

The White House was seeking to renegotiate US Chips and Science Act awards and had signalled delays to some coming semiconductor disbursements, two sources familiar with the matter told Reuters.

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The people, along with a third source, said the new administration was reviewing the projects awarded under the 2022 law, meant to boost American domestic semiconductor output with US$39 billion in subsidies.

Washington plans to renegotiate some of the deals after assessing and changing current requirements, according to the sources. The extent of the possible changes, and how they would affect agreements already finalised, was not immediately clear. It was not known whether any action had yet been taken.

“The Chips Programme Office has told us that certain conditions that do not align with President (Donald) Trump’s executive orders and policies are now under review for all Chips Direct Funding Agreements,” GlobalWafers spokeswoman Leah Peng said in a statement to Reuters.

The Chips and Science Act was signed by then US President Joe Biden in 2022 to boost domestic semiconductor manufacturing. Photo: AP Photo
The Chips and Science Act was signed by then US President Joe Biden in 2022 to boost domestic semiconductor manufacturing. Photo: AP Photo

Taiwan’s GlobalWafers, which said it had not been notified directly by Washington of any changes to the conditions or terms of their awards, is set to receive US$406 million in US government grants for projects in Texas and Missouri. The company is currently set to receive subsidies only after it achieves specific milestones later in 2025.

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