[News] Trump’s Commerce Secretary Pick Reportedly Hints at CHIPS Act Support Despite Uncertainty

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As Donald Trump assumes office on January 20, the $52 billion CHIPS and Science Act enters a critical stage under new leadership. Despite campaign criticism, Bloomberg reports that Howard Lutnick, Trump’s Commerce Secretary nominee, indicated to outgoing Secretary Gina Raimondo his plan to continue the program.

According to Bloomberg, Howard Lutnick assured Commerce Secretary Gina Raimondo of his commitment to the initiative during a recent meeting. A Commerce spokesperson declined to comment, and Trump’s transition team did not respond to requests for comment, as noted by the report.

Another report from Tom’s Hardware notes that with $39 billion in grants distributed and over $450 billion in private investments generated, the program shows clear progress.

TSMC Confident in U.S. Support; Confirmed Funds Received in Q4

One of the highlights under the CHIPS Act would be foundry giant TSMC’s Arizona first fab, which is confirmed to have kicked off volume production of the 4nm node, as the company suggested at its earnings call last week.

Notably, a latest CNBC report, citing CFO Wendell Huang, reveals that the company remains confident in continued U.S. support, and TSMC already received $1.5 billion in funds in the fourth quarter, 2024.

Under Biden’s CHIPS Act, TSMC was promised $6.6 billion to build three advanced chip plants in Arizona. Construction of the second plant is on track, with operations set to start in 2028.

Uncertainties Lurk

However, Blomberg also brings up concerns of the challenges remained, with broader disruptions in the chip industry adding to the difficulties. Two major participants, Intel and Samsung, are facing downturns, and it will take years to get many of the new factories operational, as highlighted by the report.

For instance, Intel and Samsung have scaled back their plans. Intel originally planned to invest USD 100 billion over the next five years in new fabs and expansions across Arizona, New Mexico, Ohio, and Oregon. Yet, it has reportedly delayed its USD 20 billion chip project in Ohio, with the completion postponed to 2026–2027 and operations expected to commence around 2027–2028. Samsung has rumored to reduce its Texas investment as well.

According to Bloomberg, under Biden’s administration, 20 deals were finalized, with preliminary agreements for 14 more. Although $75 billion was available for loans, only a small portion was used. Most federal support for companies will come from 25% tax credits, the report adds.

The Bloomberg report also notes that some companies have expressed concern that certain contract terms could give Trump officials room to make changes. One major concern is that the deals allow for government actions, including reclaiming funds, if companies violate conditions — even for small issues like missing a paperwork deadline, the report indicates.

Read more

• [News] CHIPS Act Funding Highlights before Trump Takes Office: TSMC, Intel, Samsung, and More
• [News] Biden’s AI Chip Export Curbs in the Works: Key Points of Three-Tier System at a Glance

(Photo credit: White House)