(Bloomberg) — President Donald Trump called for an end to a landmark $52 billion semiconductor subsidy program that’s spurred more than $400 billion in investments from companies like Taiwan Semiconductor Manufacturing Co. and Intel Corp.
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The Chips Act is a “horrible, horrible thing,” the president told Congress on Tuesday, to applause in the chamber. He implored US House Speaker Mike Johnson to “get rid” of the law and use whatever was left over to “reduce debt or any other reason you want to.”
The Chips Act, a bipartisan law that President Joe Biden signed in 2022, set aside $39 billion in grants — plus loans and 25% tax breaks — to revitalize American semiconductor manufacturing after decades of production shifting to Asia. It also includes $11 billion for chip research and development programs.
Biden officials divvied up the vast majority of that funding before leaving office, striking binding agreements with major leading-edge chipmakers like TSMC, Intel, Samsung Electronics Co. and Micron Technology Inc. — as well as companies that produce older-generation semiconductors, like GlobalFoundries Inc. and Texas Instruments Inc.
(Updates with more from Trump’s address starting in second paragraph.)
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