Makers, Biden rush to sign CHIPS law deals after Trump win
As the Trump administration prepares to take office, fears arise around the potential repeal or weakening of the CHIPS and Science Act, a $230 billion initiative created under President Biden to boost the U.S. semiconductor industry and reduce dependence on Asia. Trump and House Speaker Mike Johnson have voiced plans to revisit or dismantle the Act, though GlobalFoundries CEO Thomas Caulfield remains optimistic, viewing these threats as election rhetoric. Caulfield and other industry leaders argue that the bipartisan support behind the CHIPS Act offers stability, especially with a nonprofit organization, Natcast, overseeing its operations to avoid political volatility. However, industry experts caution that the new administration could introduce significant delays, modifications, or restrictions, potentially impacting planned projects, like Micron’s $100 billion campus in Syracuse, raising uncertainty about the future of domestic semiconductor manufacturing.
My Take
The CHIPS Act now faces significant risk under the incoming administration, casting a shadow over planned growth in the U.S. semiconductor industry. If replaced by higher tariffs rather than grants, loans, and tax incentives, the approach could drive up costs for U.S. companies relying on imported components, potentially slowing growth. Tariffs alone may not provide the stability or immediate capital necessary to rapidly scale domestic production, putting U.S. manufacturers at a disadvantage in the race against Asia’s established chip-making powerhouses. With fewer incentives to invest locally, companies may also hesitate to expand U.S. operations, raising concerns about long-term competitiveness. The coming months will reveal more details on potential changes, and the industry will be watching closely.
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Credit: Times Union