[News] Trump’s Moves Could Delay CHIPS Act Funding Distribution as NIST Plans Major Staff Cuts

President Trump may not stop the $53 billion CHIPS Act outright, but his moves could slow fund distribution for U.S. chip fabs. Bloomberg and The Register report that the National Institute of Standards and Technology (NIST), under the Commerce Department, plans to cut up to 500 probationary staffers as part of Trump’s federal downsizing.

As per Bloomberg, some probationary employees were verbally notified of impending layoffs on Wednesday, though the final scope is still undecided.

Notably, NIST played a key role in the Biden administration’s initiatives, as it oversees semiconductor funding and establishing AI standards. The cuts, according to the reports, could heavily impact semiconductor offices, slashing nearly 60% of staff handling $39 billion in manufacturing incentives and two-thirds overseeing $11 billion in R&D projects.

The decision came soon after new Commerce Secretary Howard Lutnick took office and Trump announced a potential 25% tariff on imported semiconductors. The Register report also brings up concerns that NIST layoffs could slow CHIPS Act funding, giving Congress time to revisit the law before all funds are allocated.

According to MoneyDJ, Intel ($7.86 billion) and Micron ($6.165 billion) are among the top recipients of CHIPS Act subsidies. Semiconductor equipment makers like Applied Materials and Lam Research also benefit as chipmakers increase spending on new fabs.

TSMC, which has been under the spotlight for a potential Intel deal, is set to receive $6.6 billion from the Biden administration’s CHIPS and Science Act to support the construction of three advanced chip fabs in Arizona. The company received its first batch of government support, totaling $1.5 billion, according to CNBC.

Read more

• [News] CHIPS Act Funding Highlights before Trump Takes Office: TSMC, Intel, Samsung, and More
• [News] Trump’s Commerce Secretary Pick Reportedly Hints at CHIPS Act Support Despite Uncertainty

(Photo credit: Intel)