White House Reviews CHIPS Act Awards, Delays Likely in Payments

Multiple informed sources have disclosed that the Trump White House is looking to renegotiate certain aspects of the CHIPS and Science Act awards. This could potentially delay the release of funds. As reported by Reuters, the administration is keen to review and possibly modify some conditions set by the previous government concerning the grant.

“The CHIPS Program Office has indicated that various stipulations which do not conform to President Trump’s executive orders and policies are currently being reassessed for all CHIPS Direct Funding Agreements,” stated GlobalWafers spokesperson Leah Peng to Reuters. The CHIPS Act grants under the Biden administration frequently included specific stipulations such as the use of only unionized labor for infrastructure projects and the provision of childcare for employees. Although details are still forthcoming, the White House seems inclined to relax these conditions or perhaps eliminate them entirely, particularly if they conflict with the current governmental direction.

The Semiconductor Industry Association (SIA) is reportedly polling its members for opinions on how the CHIPS and Science Act could be enhanced. However, David Isaacs, the SIA Vice President of Government Affairs, emphasized to Reuters the importance of continuing the manufacturing incentives and research programs without interruptions. “We are prepared to collaborate with Commerce Secretary Nominee Lutnick and other Trump administration officials to simplify the program’s requirements and further our joint objective of fortifying U.S. leadership in semiconductor technology,” he said.

In addition to these possible relaxations of prerequisites, there are concerns within the current administration regarding CHIPS Act recipients using their grants to fund expansions abroad. Notably, Intel, which secured a $7.86 billion agreement under the act and has already received $2.2 billion, still proceeded to announce a $300 million investment in China to enhance its packaging and testing operations. This move directly opposes the CHIPS and Science Act’s intent to attract manufacturers to produce cutting-edge semiconductors in the United States.

The specific amendments the White House intends to implement, and their potential impact on existing agreements, remain unclear. This uncertainty is causing apprehension among many in the semiconductor sector, particularly among those awaiting further funding. Despite Trump’s past criticism of subsidies, preferring tariffs to encourage domestic manufacturing, there are optimistic developments. For instance, the Republican-dominated Congress has introduced legislation to extend tax credits to chip designers, and Vice President JD Vance stated at an international conference that the most advanced AI chips would be manufactured in the U.S.