Americans, do you support revoking CHIPS Act?

[Cubus]

Lawmakers and the microchip industry are struggling to respond to President Donald Trump’s sudden demand that Congress “get rid of” the landmark CHIPS and Science Act, a popular $52.7 billion law that would be both politically and legally complicated to unwind.

CHIPS and Science passed in 2022 with bipartisan support — winning over 17 Senate and 24 House Republicans — and it was inspired by legislation crafted by Congress during Trump’s first term. The law set aside roughly $50 billion to reduce dependence on geopolitically risky Taiwan — which makes most of the world’s cutting-edge chips used for artificial intelligence and smartphones — by funding semiconductor factories and research in the U. S.

But Trump’s request marked an escalation in his rhetoric around CHIPS, which he has long criticized as a wasteful giveaway to rich companies when tariffs could serve the same goal for free.

Trump called the law a “horrible, horrible thing,” then turned to GOP House Speaker Mike Johnson and demanded he “get rid of the CHIP[S] Act, and whatever’s left over, Mr. Speaker, you should use it to reduce debt or any other reason you want to.”

If a repeal through Congress does not happen, Trump’s other options — such as dialing back CHIPS requirements or even revoking award money — could run through the Commerce Department. The CHIPS program is already facing disruption after layoffs hit the Commerce offices responsible for $50 billion of its subsidies. Nearly everyone from the 43 probationary staff fired was from the CHIPS Program Office, the entity overseeing multi-billion-dollar grants with chipmakers like Micron and TSMC — though Commerce officials and newly confirmed Secretary Howard Lutnick agreed to pare back plans for even deeper cuts, according to two former department employees.

Source: https://www.politico.com/news/2025/03/06/trumps-chips-demand-creates-a-52-billion-headache-for-congress-00215214

[lightbulb27]

Given we've not been able to pass a budget and we are broke, yes. Funding things without funding them is a problem.

But we got to be conscious of the side effects... we need confident legislation. companies cannot make billion dollar investments and have the rugs pulled. That creates mis-trust and is hard to fix.

[exitseven]

The CHIPS act was a well intentioned but badly executed act. They got the money spending part right but not one single job was created. President Trump is doing the same thing only he is doing it by offering tax incentives and by making the products produced in these facilities free from US tariffs.

[exitseven]

Thanks for the MHO😎

[Cubus]

You're welcome

[OlderAndWiser]

I don't know enough about the subject to feel confident forming an opinion.

[Cubus]

I provided some data about it in the description.

[WindAtMyBack]

As a general rule, every government program has a purpose. Every program can be justified with good intentions and good arguments. But it's like a personal budget. You can justify everything you buy, but if you keep buying everything you think you need you're gonna go bankrupt. You must use restraint, even when you think you want something.

The semiconductor industry has been highly competitive. Sometimes it's unfair competition. Other countries are known to have used dumping as a tactic. There have been protectionist policies on all sides. It's a complicated issue.

I worked briefly for a Japanese semiconductor fab myself. I can't say for sure about that particular plant, but I think it's quite likely that plant would not be in the US if not for US protectionist policies. Or more accurately because they cracked down on Japanese protectionist policies.

TSMC is opening a plant in the US, maybe more than one. That was planned before Trump came into office. Some people, including officials from TSMC, claim that the tariffs have influenced further investment into more US plants, or the expansion of existing plants.

I'm all for doing things to increase domestic production by American companies. But that is easier said than done. TSMC is a HUGE semiconductor company. I can't see any US company competing with them at the moment. I think it would be easier to entice TSMC to expand in the US than to help American companies go head-to-head with TSMC.

TSMC is Taiwanese. The US has a special relationship with Taiwan, which I hope continues. TSMC is tremendously important to Taiwan. Whatever happens with TSMC, I hope it doesn't negatively affect our relationship with Taiwan - and in turn the rest of that region of the world. There is more to this than economics.

[beefcakebradybatson]

I used to watch "CHIPs" in the 70's , and star Erik Estrada was 76 Mar.16!!!