Trump Administration Renegotiates Biden-Era Semiconductor Grants to Boost Value for Taxpayers
The Trump administration is revisiting and renegotiating several semiconductor grants originally awarded under former President Joe Biden’s CHIPS and Science Act, according to U.S. Commerce Secretary Howard Lutnick. Speaking at a Senate Appropriations Committee hearing, Lutnick indicated that some of the Biden-era grants were “overly generous” and may be reduced or canceled to better serve American taxpayers.
Signed in 2022, the CHIPS Act allocated $52.7 billion to revitalize U.S. semiconductor manufacturing and research, aiming to lure global chipmakers away from Asia. The program included significant grants for major players such as Taiwan’s TSMC, South Korea’s Samsung and SK Hynix, and U.S.-based Intel and Micron. Although these grants were approved under Biden’s administration, their disbursement only began recently, with specific details kept confidential.
Lutnick highlighted TSMC as a prime example of successful renegotiation. Originally granted $6 billion, TSMC has reportedly increased its planned investment in U.S. manufacturing from $65 billion to $165 billion, without increasing the government’s funding. This renegotiation was framed as a win for taxpayers, maximizing investment returns without additional public expenditure.
The White House had earlier signaled a desire to reassess and potentially delay some upcoming disbursements under the CHIPS Act, as part of efforts to ensure accountability and value for money. Lutnick emphasized that deals being finalized are “better,” while some that were too generous are being reconsidered or scrapped altogether.
In addition to semiconductor investments, Lutnick addressed concerns about preserving American dominance in artificial intelligence computing capacity. He reaffirmed the administration’s goal to maintain over 50% of global AI computing power domestically, even as the government permits sales of advanced U.S. AI chips abroad, such as to the United Arab Emirates.
Source: Reuters