The U.S. election is over, but what does this mean for the semiconductor industry? For many, it means rushing to finalize agreements with the current Biden Administration before the inauguration. Due to comments made by the President-elect and other top Republican lawmakers, many are concerned about the future of the CHIPS and Science Act under the incoming President-elect Donald Trump.
In the days before the election, Trump and other Republican leaders in Congress criticized the law and discussed ways to reform it. In October, Trump said on a Joe Rogan podcast, “That chip deal is so bad.”
Despite recent hiccups, TSMC and GlobalFoundries have reportedly finalized the binding funding agreements under the CHIPS Act. GlobalWafers, another chipmaker that had been awarded funding, expressed optimism that the CHIPS Act would continue under the new administration.
"Multi-year and decadal programs like the CHIPS Act and the agreements we have signed are regularly continued from one administration to the next," GlobalWafers said in a statement on Thursday. "We expect the CHIPS program to be no different and run smoothly in the Trump administration."
Despite bipartisan support for its passage, uncertainty continues to mount over the Act’s future.
In the same October podcast, AZFamily News said that Trump expressed that “the federal government was awarding billions to rich companies. Instead of incentives, imposing tariffs was the right way to spur domestic manufacturing.”
“You have to make them spend money in the United States, and those plants will open up. They’ll fund them. We don’t have to put up 10 cents,” Trump said.
U.S. Senator Mark Kelly did not take these comments lightly. “He wants to kill the CHIPS and Science Act. Killing that legislation is going to lay off tens of thousands of people in the state of Arizona.”
Further worries came from a comment by House Speaker Mike Johnson, who said Republicans would probably work to repeal the law. He later issued another statement, saying they would streamline the act, not repeal it.
On the other hand, some business leaders and chipmakers are keeping their plans the same despite recent comments. Company management believes that “Trump would have limited authority to unilaterally upend [the Chips Act], especially if companies reach agreements with the Biden Administration before the end of the year.”
TSMC’s prior commitments, including its Arizona plants and further investments within the United States, have remained unchanged. Meanwhile, Intel has expressed optimism, like GlobalWafers.
“The idea behind the CHIPS and Science Act began in the first Trump Administration and maintains strong bipartisan support. Restoring America’s semiconductor manufacturing leadership is integral to the country’s economic competitiveness and national security,” an Intel spokesperson said. “As the only American company that designs and manufactures leading-edge chips, Intel has a critically important role to play, and we look forward to working with the Trump Administration on this shared priority.”