Trump’s Call to Scrap ‘Horrible’ CHIPS Act Sends Shockwaves Through Tech Industry
In a bombshell statement that has rattled Washington and Silicon Valley alike, former President Donald Trump has declared his intent to dismantle the CHIPS and Science Act, calling it a “horrible, horrible thing.” The move has sparked widespread panic in the semiconductor industry, which has been banking on the $52.7 billion government investment to bolster U.S. chip production.
The CHIPS Act, signed into law in 2022, was designed to reduce America’s reliance on foreign semiconductor manufacturers, particularly in China and Taiwan. The program has already funneled billions into domestic factories, creating jobs and securing supply chains for critical technologies. However, Trump argues that the money would be better spent on reducing the national debt and claims the Act has failed to deliver its intended results.
Republican lawmakers, including some of Trump’s staunchest allies, have expressed reservations about repealing the Act. Senator Todd Young, a key supporter of the legislation, warned that scrapping CHIPS funding could undermine national security and economic growth. On the other side, Democratic leaders, including Senate Minority Leader Chuck Schumer, have condemned Trump’s proposal, calling it an attack on American innovation.
Despite the controversy, semiconductor stocks, including Intel and Taiwan Semiconductor Manufacturing Co. (TSMC), saw an unexpected surge following Trump’s remarks. Market analysts suggest that while his comments introduce uncertainty, the existing commitments under the CHIPS Act may limit immediate damage.
With billions already invested in U.S. chip infrastructure and legal agreements in place, repealing the CHIPS Act would face significant legislative hurdles. Nonetheless, Trump’s latest attack on the program has ignited a fierce debate over the future of American technological supremacy.
