(VOR News) – In a statement issued on Tuesday, President Donald Trump of the United States Semiconductor Chip urged Congress to abolish a significant bipartisan bill enacted in 2022.

This legislation provides subsidies amounting to $52.7 billion for the production and development of semiconductor chips. Conversely, the funds should be employed for debt settlement.

This scheme, the Semiconductor Chip Act, is frustrating.

Despite the potential expenditure of hundreds of billions of dollars, it would not provide any significant impact. During his address to Congress, Donald Trump asserted that “they appropriate our funds without expenditure.”

“Mr. Speaker, the Semiconductor Chip Act should be entirely rescinded, and any remaining funds should be allocated to the reduction of the national debt.”

The Semiconductor Chip and Science Act, enacted by President Joe Biden in August 2022, granted the government the authority to lend $75 billion. The legislation allocated $39 billion in subsidies for semiconductor and component production within the United States.

Since that time, Trump has employed these terms to express his strongest denunciation of the bipartisan Semiconductor Chip Act. Donald Trump stated, “We must refrain from offering them financial assistance.”

This assertion was presented alongside his premise that the removal of supplementary tariffs would suffice to persuade them to establish factories in the United States.

Secretary of Commerce Howard Lutnick has commended the proposal, expressing his readiness to evaluate awards finalised during Vice President Joe Biden’s administration.

During Vice President Joe Biden’s administration, Secretary of Commerce Gina Raimondo extended a proposal for government support to the five most prominent foreign semiconductor chip companies to persuade them to establish manufacturing facilities in the United States.

This move was taken to address the security risks posed by imported chips from other countries. In the latter stages of Vice President Joe Biden’s administration, the Commerce Department finalised the distribution of over 33 billion dollars in scholarships and awards.

A total of $6.1 billion was acquired by Micron (MU.O), $6.6 billion by Taiwan Semiconductor Chip Manufacturing Co. (2330.TW), and $4.745 billion by Samsung Electronics (005930.KS). Intel (INTC.O) obtained as much as $7.86 billion, while Micron (MU.O) acquired $6.6 billion.

Authorities have expressed concern that President Trump may attempt to withdraw legally binding grant agreements negotiated under Vice President Joe Biden. According to Governor Kathy Hochul, the legislation will result in Micron investing one hundred billion dollars in Central New York and creating fifty thousand jobs. It has been expressed by Trump that he wants to eliminate it.

This week, TSMC announced its intention to invest a total of one hundred billion dollars in the United States in collaboration with President Trump.

This project will build five semiconductor chip plants in the coming years.

On Monday, at a ceremony held at the White House, Lutnick referenced the $6.6 billion grant issued to TSMC. He asserted that the agency does not plan to provide any additional subsidies to TSMC, notwithstanding the company’s eligibility for a 25% manufacturing investment tax credit.

TSMC announced that it had secured $1.5 billion of funding allocated to it last month. Representative Greg Stanton issued a statement characterising President Trump’s remarks as a “direct assault on Arizona’s Semiconductor Chip industry and tens of thousands of Arizona workers.”

He asserted in his statement that the legislation would have inhibited TSMC from executing an investment of one hundred billion dollars.

As per two sources familiar with the matter, almost one-third of the employees at the United States Department of Commerce office managing the $39 billion in manufacturing subsidies for Semiconductor Chip manufacturers were dismissed this week.

A month ago, Reuters reported that the newly elected administration of President Trump is presently reviewing the authorised projects as part of a significant reform initiative for the federal government.

SOURCE: ARYN