[Semiconductor] Will Trump Support the CHIPS Act? (Apr. 2025)

 


[Posting: April 21, 2025] Amid mounting criticism from former President Donald Trump regarding the U.S. CHIPS Act, disputes continue over the subsidies promised to individual companies by the Biden administration in 2022. As Trump seeks to reduce the U.S. fiscal deficit, he is leveraging all forms of tariffs (universal, reciprocal, retaliatory) to pressure foreign countries. He refers to the CHIPS Act as a “horrible law,” arguing that instead of subsidizing chipmakers, the U.S. should encourage domestic production through tariff imposition. While both the Biden administration and a potential second Trump administration agree on the need for domestic semiconductor production, their approaches differ — with Trump favoring tariffs over subsidies. The future direction of this policy remains a subject of great interest.

CHIPS Act: U.S. Semiconductor Industry Support Law

The CHIPS Act (Creating Helpful Incentives to Produce Semiconductors for America Act) was enacted in 2022 to promote semiconductor manufacturing within the United States and strengthen supply chains. As of 2025, this legislation plays a crucial role in enhancing U.S. semiconductor competitiveness and national security. Recent developments and potential policy shifts under a new Trump administration have drawn increasing attention.

1. CHIPS Act in 2025: Latest Developments and Subsidy Status

The CHIPS Act provides a total of $52 billion in subsidies to stimulate domestic semiconductor production. These funds are allocated to help chip manufacturers build new fabs and expand R&D efforts within the U.S.

Major Investment Plans by Key Companies

  • TSMC: Building a $165 billion advanced semiconductor facility in Arizona, with plans to add six production lines supported by CHIPS Act funding.

  • Intel: Constructing new manufacturing facilities across four states (Arizona, New Mexico, Oregon, Ohio), having secured $8.5 billion in subsidies.

  • Samsung Electronics: Developing a new semiconductor plant in Texas, receiving $6.4 billion in government support.

  • Micron: Building a $6.14 billion semiconductor fab in New York State.

These investment plans are expected to significantly enhance U.S. manufacturing capacity and create tens of thousands of jobs.

2. Trump’s Criticism of the CHIPS Act

In March 2025, former President Donald Trump publicly criticized the CHIPS Act, calling it a “horrible law.” He voiced concerns over the law’s negative economic impact and suggested using tariffs to compel chipmakers to manufacture in the U.S. rather than subsidizing them. He proposed abolishing the CHIPS Act and redirecting the funds to pay off national debt.

Trump also announced a new executive order to introduce the United States Investment Accelerator, a program aimed at boosting corporate investment through regulatory easing and streamlined permitting — further supporting domestic chip industry growth.

3. Political Response to the CHIPS Act

As of 2025, the CHIPS Act enjoys bipartisan support, with many Democrats and some Republicans recognizing it as a vital measure for semiconductor industry development. Senator Todd Young of Indiana called the CHIPS Act “an essential law to revitalize the U.S. semiconductor industry,” emphasizing its national importance.

While some Republicans support Trump’s stance, most policymakers still consider the CHIPS Act crucial to bolstering America’s technological and economic security.

4. Future Outlook: CHIPS Act & Semiconductor Industry

The CHIPS Act remains a cornerstone policy for revitalizing U.S. semiconductor production and strengthening national defense. However, Trump’s criticism and proposed policy shifts could impact its execution. As of 2025, the U.S. Department of Commerce is reassessing CHIPS Act conditions, and some companies face delays or cancellations in subsidy disbursement due to their overseas expansion announcements — especially in countries like China.

Maintaining policy consistency and investor confidence is key to the CHIPS Act’s success. Continued policy support and global supply chain stabilization are essential for advancing the U.S. semiconductor sector.

Conclusion: Sustainability of the CHIPS Act and the Future of the Semiconductor Industry

Despite criticism, the CHIPS Act plays a critical role in revitalizing domestic chip production, enhancing national security, and ensuring economic resilience. It remains a central piece of legislation shaping the future of America’s semiconductor leadership, especially as global competition intensifies.

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