US President Donald Trump called for ending a bipartisan US$52 billion semiconductor subsidy programme that has spurred more than US$400 billion in investments from companies like Taiwan Semiconductor Manufacturing Co (TSMC) and Intel Corp.
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“Your Chips Act is horrible, horrible thing,” Trump said in a prime time address to Congress on Tuesday. He implored US House Speaker Mike Johnson to “get rid” of the legislation and use “whatever is left over” to “reduce debt or any other reason you want to”.
His remarks were met with applause in a chamber that less than three years ago passed the Chips and Science Act on a bipartisan basis. US Vice-President J.D. Vance, whose home state of Ohio won a massive Intel project thanks to the law, stood up to show his support for its revocation.
The Chips Act is among most significant US forays into industrial policy in more than a generation. It set aside US$39 billion in grants – plus loans and 25 per cent tax breaks – to revitalise American semiconductor manufacturing, as well as US$11 billion for chip research and development.
The aim is to reduce reliance on Asia for the electronic components that power everything from microwaves to missiles.
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