[News] Samsung and SK hynix Face Uncertainties amid Trump’s Potential CHIPS Act Subsidy Review

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According to a report from UDN News, citing Politico, Vivek Ramaswamy, co-leader of the Department of Government Efficiency (DOGE) designated by Trump, has called the subsidies under the U.S. CHIPS Act “wasteful.”

While companies like TSMC, GlobalFoundries, and Intel have been granted funding from the CHIPS Act, the U.S. Department of Commerce is also reportedly in discussions with South Korean memory giants such as Samsung Electronics and SK hynix. However, the selected South Korean companies have not yet received any subsidies, according to another report from Liberty Times. Ramaswamy’s remarks certainly raise concerns in terms of Trump’s next move.

Ramaswamy shared a video on X featuring an interview with U.S. Secretary of Commerce Gina Raimondo, in which she discussed her efforts to accelerate plans under the CHIPS Act. The DOGE co-leader stated that the Biden administration aimed to finalize this funding before Trump takes office in January, describing such actions as highly inappropriate. He also criticized the administration for accelerating spending during the transition of power, the report adds.

According to the report, Ramaswamy posted on X that he and Elon Musk, as co-leaders of the Department of Government Efficiency, would closely review every contract issued under the CHIPS Act in its final stages, as well as other fiscal measures implemented during Biden’s term, such as the Inflation Reduction Act. He plans to propose that the Inspector General should carefully examine these expenditures, the report states.

Following the U.S. election, the report notes that the Biden administration secured over USD 16 billion in final subsidies for various companies, including TSMC, GlobalFoundries, aerospace firm Rocket Lab, defense contractor BAE Systems, and Intel.

The report notes that on November 15, the U.S. Department of Commerce finalized a government subsidy of USD 6.6 billion for TSMC’s Arizona operation. According to a memorandum signed by U.S. Department of Commerce and TSMC, the subsidies will be disbursed in phases. A senior U.S. official mentioned that the Department of Commerce plans to distribute at least USD 1 billion to TSMC before the end of the year, the report adds.

After finalizing the USD 6.6 billion funding award to TSMC and USD 1.5 billion to GlobalFoundries lately, the Biden administration announced its finalized approval of USD 7.86 billion in subsidies for Intel.

Read more

• [News] Intel Rumored to See Chip Grant Reduce to under USD 8 Billion following Delayed Investments
• [News] Asia’s Chip Giants Diverge in Progress on U.S. CHIPS Act, as TSMC Reportedly to Secure Funding Soon

(Photo credit: Vivek Ramaswamy’X)