[News] Trump Pushes to Scrap CHIPS Act, Jeopardizing TSMC Subsidies and Intel’s Ohio Plans

Shortly after TSMC announced an additional $100 billion investment on American soil, President Donald Trump urged lawmakers to repeal the CHIPS and Science Act, which casts a cloud over TSMC’s pending subsidies, according to Commercial Times and the Economic Daily News.

Meanwhile, concerns have arisen over whether Intel, another major beneficiary of the act, will secure the remaining funds to make progress on its Ohio investment, as Vice President J.D. Vance, a former Ohio senator, publicly backed Trump’s comments on repealing the CHIPS Act.

Subsidies and Tariff Risks Still Loom

As noted in a Reuters report, in a speech to Congress, Trump criticized the CHIPS Act by referring to it as “a horrible, horrible thing.” The Act, signed by Biden in August 2022, allocated $39 billion in subsidies for U.S. semiconductor manufacturing and related components, along with $75 billion in government lending authority, as per Reuters.

Notably, in the final weeks of the Biden administration, the Commerce Department finalized over $33 billion in awards, including $4.745 billion for Samsung, up to $7.86 billion for Intel, $6.6 billion for TSMC, and $6.1 billion for Micron, the report adds.

TSMC confirmed receiving $1.5 billion in Q4 2024, but Commercial Times raises concerns that a second round of funding may not happen, putting the foundry giant’s remaining $5.1 billion in subsidies and up to $5 billion in loans at risk.

Meanwhile, this may not be the only issue TSMC and Taiwanese chipmakers have to worry. As per WIRED, discussions within the Trump administration continue over the possibility of imposing tariffs up to 100% on TSMC and other Taiwanese chipmakers. One proposal could include tariffs not only on Taiwanese chips but also on electronics containing them, like Apple iPhones, the report indicates.

Intel’s Ohio Project Face Uncertainties

On the other hand, the Economic Daily News report notes that it remains unclear if Congress can gather enough votes to repeal the CHIPS Act, especially since many Republican lawmakers supported it initially.

Trump’s threat to abolish the act raises concerns about Intel’s next move as well, as the subsidies played a key role in Intel’s decision to build new plants in Ohio, as noted by the Economic Daily News.

According to local media The Columbus Dispatch, Dan Tierney, spokesman for Gov. Mike DeWine, said Ohio will closely monitor any federal actions on the CHIPS Act but emphasized that Intel remains committed to its $28-billion Ohio plants, which are expected to hire 3,000 workers.

Intel has received $2.2 billion of its $7.865 billion in CHIPS Act funding, with at least $1.5 billion allocated for the New Albany project in Ohio, the report suggests.

Nevertheless, Intel’s Ohio chip plants could face more delays, as Team Blue has pushed the timeline back at least five years, as per Reuters.

Its first Ohio factory, originally set for 2025, will be delayed by at least five to six years, opening in 2030 or 2031. Meanwhile, the second factory in Ohio won’t be ready until 2031, with operations starting in 2032, the Reuters report adds.

Read more

• [News] TSMC’s U.S. Investment Could Lead to 15% Price Hike, with AMD and NVIDIA Cheering on the Expansion
• [Insights] Trump’s Chip Tariffs Shake Up the Game: Dive Into TSMC’s Huge U.S. Investment Plans

(Photo credit: The White House)