The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters.
The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies.
Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said.
Photo: Ann Wang, Reuters
The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known whether any action has yet been taken.
Four sources with knowledge of the discussions told reporters that the White House is concerned about many of the terms underpinning the Chips and Science Act industry subsidies.
Those encompass additional clauses, including requirements added into contracts by the administration of former US president Joe Biden, including that recipients must use unionized labor to build factories and help provide affordable childcare for factory workers.
The Semiconductor Industry Association, a trade group representing the chip industry, has started asking members how the program could be improved.
However, David Isaacs, vice president of government affairs for the group, said that “it’s important both the manufacturing incentives and research programs proceed without disruption.”
“We stand ready to work with [US] commerce secretary nominee [Howard] Lutnick and other members of the Trump administration to streamline the program’s requirements and achieve our shared goal of strengthening US leadership in chip technology,” Isaacs added.
Since taking office, Trump has issued a series of executive orders aimed at dismantling diversity, equity and inclusion programs across the federal government and the private sector.
One of the sources said that the White House is also frustrated by companies that accepted CHIPS Act subsidies and then announced significant overseas expansion plans, including in China. The law allowed some investments in China.
Intel, for example, announced a US$300 million investment in a Chinese assembly and test facility in October last year after saying in March that it had won a major award under the CHIPS Act.
Many of the biggest recipients of the CHIPS Act funding — including Intel, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Samsung Electronics and SK Hynix — all have major manufacturing facilities in China.
Intel said it had received two payments totaling US$2.2 billion in funding from the CHIPS Act, but declined to comment.
A TSMC spokesperson said that the company had received US$1.5 billion in CHIPS Act monies before the new administration came in as per the milestone terms of its agreement.
Samsung, SK Hynix and Hemlock Semiconductor Corp declined to comment, while Bosch referred reporters to the Chips Office.
Micron Technology Inc and GlobalFoundries Inc did not respond to requests for comment.
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