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The CHIPS Act, launched under the Biden administration to revive U.S. leadership in semiconductors, has seen little support from President Donald Trump. According to a report from TechNews, citing The Chosun Daily, after Trump repeatedly expressed his intention to abolish the CHIPS and Science Act, the CHIPS Program Office (CPO) under the U.S. Department of Commerce has reportedly cut 80% of its staff.
The CPO originally employed around 150 staff members, but approximately 120 have either been dismissed or encouraged to resign, as the report notes. The downsizing at the CPO is reportedly being overseen by Elon Musk, who heads the newly established Department of Government Efficiency (DOGE), according to the report.
Notably, Dan Kim (Korean name Kim Dong-jin), who previously served as vice president at SK hynix’s Washington, D.C. office, also resigned from the CPO last week. As highlighted in the report, his departure — as a senior Korean American official with a strong understanding of South Korean tech company operations — has heightened concerns over whether the subsidies allocated for Samsung Electronics and SK hynix will proceed as planned.
South Korean firms are reportedly keeping a close watch on whether the semiconductor subsidies approved by the Biden administration will be disbursed as planned. Should the Trump administration decide to revise the subsidy framework, it could significantly affect the final amounts allocated, as the report indicates.
During Biden’s term, the U.S. government approved USD 4.745 billion in CHIPS Act subsidies for Samsung Electronics—amounting to 12.8% of the company’s total planned investment—but according to the report, the funds have yet to be disbursed. Similarly, SK hynix was approved for USD 458 million in subsidies, which also remain undelivered.
According to MoneyDJ, Intel (USD 7.86 billion) and Micron (USD 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. Meanwhile, TSMC is set to receive USD 6.6 billion from the CHIPS Act, and the company has received its first batch of government support, totaling USD 1.5 billion, according to CNBC.
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(Photo credit: The White House)
