Trump says US should scrap CHIPS Act, use the cash to cut debt
- Reference: 1741190409
- News link: https://www.theregister.co.uk/2025/03/05/trump_speech_scrap_chips_act/
- Source link:
TSMC promises $100B US expansion that Trump hails without clarifying chip tariff threat [1]READ MORE
In a [2]rambling speech to a joint session of Congress on Tuesday, the President reviewed many of the events that have already taken place under his administration, including the deal this week with Taiwanese semiconductor contract manufacturer TSMC to [3]invest $100 billion on expanded operations in Arizona.
"And we are not giving them any money," Trump claimed.
With regard to the semiconductor subsidy scheme, he said: "Your CHIPS Act is a horrible, horrible thing. We give hundreds of billions of dollars and it doesn't mean a thing. They take our money and they don't spend it."
"You should get rid of the CHIP Act (sic) and whatever's left over, Mr. Speaker, you should use it to reduce debt. Or any other reason you want to," he added.
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This isn't the first time a Republican has suggested getting rid of the multi-billion funding that was set aside as a cornerstone of the Biden administration's [5]plan to revitalize America's science and chip sectors .
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Last year, House Speaker Mike Johnson suggested his party would [8]move to repeal the $280 billion CHIPS and Science Act funding bill , of which the $53 billion CHIPS Act is part of, if his party secured a majority in Congress.
Johnson soon walked back on his remarks, especially as other Republicans such as Brandon Williams, then congressman for New York, expressed their support for the legislation as it would bring investment to his state.
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Pulling the funding requires Congress to revisit the Act, and is likely to face similar pushback from members of congress representing areas where new fabrication plants are set to be built. Much of what Trump talks about never comes to pass in any case.
However, the President has already made a swipe at the program with staff cuts at the federal agencies that are responsible for administration of the CHIPS and Science Act. Last month it was announced that [10]almost 500 staff were being shed from the National Institute of Standards and Technology (NIST) , including workers running the agency's $11 billion semiconductor research and development program.
The Biden administration hurried to finalize some of the funding it wanted to disburse to chipmakers under the CHIPS Act before its term of office came to an end, including up to [11]$7.86 billion for Intel in November and [12]$6.1 billion for memory maker Micron in December.
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According to the [14]Guardian , TSMC had already received $1.5 billion of its promised funding before the new administration came in. We asked Intel and Micron if they had so far received any of their funds, and if any outstanding sums are at risk.
[15]Intel slows its roll on $28B Ohio fab expansion, pushing production to 2030s
[16]Trump can't quickly or easily kill the CHIPS Act, but he can fire the workers funded by it
[17]Trump teases 25% semiconductor tariffs that will go ‘substantially higher’
[18]As Trump slugs Canada, Mexico and China with tariffs, industry groups hope trade war weapon isn’t pointed at their feet
Micron detailed plans to invest [19]$100 billion over 2 decades in a memory chip fabrication plant to be built in New York State, so the loss of its CHIPS Act cash may not affect its plans greatly.
Intel, however, had previously indicated that investing in new semiconductor plants on US soil were dependent on it getting subsidy cash. Without the funding, the Santa Clara biz would continue to build fabs in Arizona and Ohio, but the [20]expansion would take longer , and it wouldn't be as comprehensive, former CEO Pat Gelsinger once told a US Senate Committee.
Since then, Intel has run into [21]financial troubles and problems with its technology roadmap that have seen it [22]delay the completion of its $28 billion Ohio facility until at least 2030. ®
Get our [23]Tech Resources
[1] https://www.theregister.com/2025/03/04/tsmc_trump_arizona_investment/
[2] https://www.nytimes.com/2025/03/04/us/politics/transcript-trump-speech-congress.html
[3] https://www.theregister.com/2025/03/04/tsmc_trump_arizona_investment/
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z8iDMVpb01qdnHHrD3Mq-AAAAcQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[5] https://www.theregister.com/2022/08/09/biden_signs_chips_act/
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z8iDMVpb01qdnHHrD3Mq-AAAAcQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z8iDMVpb01qdnHHrD3Mq-AAAAcQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2024/11/04/chips_act_repeal/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z8iDMVpb01qdnHHrD3Mq-AAAAcQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2025/02/19/trump_layoffs_nist/
[11] https://www.theregister.com/2024/11/26/intel_chips_act_funding/
[12] https://www.theregister.com/2024/12/11/micron_chips_funded/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z8iDMVpb01qdnHHrD3Mq-AAAAcQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://www.theguardian.com/business/2025/mar/03/tsmc-semiconductor-chips-us
[15] https://www.theregister.com/2025/02/28/intel_delay_ohio/
[16] https://www.theregister.com/2025/02/19/trump_layoffs_nist/
[17] https://www.theregister.com/2025/02/19/trump_semiconductor_tariff_plan/
[18] https://www.theregister.com/2025/02/03/us_tariff_analysis/
[19] https://www.theregister.com/2022/10/05/micron_100b_memory_fab/
[20] https://www.theregister.com/2022/03/24/intel_chips_subsidy/
[21] https://www.theregister.com/2025/01/31/intel_q4_2024/
[22] https://www.theregister.com/2025/02/28/intel_delay_ohio/
[23] https://whitepapers.theregister.com/
Debt? HA!
Every cent from the DOGE massacre and tariffs will go to tax cuts for the rich. As the plan currently stands, those tax cuts will add 4 trillion to the national debt. The US needs to ramp up chip production as they'll be cut off from the leading edge once China invades Taiwan possibly leading to TSMC destroying their EUV machines.
Sounds like Fidel Castro
Fidel Castro too had those hours long rambling speeches. They too were fairy tales.
We are not giving them any money
The US is a big market, but it is smaller than the European market (in terms of consumers) and way smaller (on the same basis) than India or China.
We're now at a stage with cutting-edge technology in which the investment can only really be justified on the basis of a global market. Even the lowly automotive industry depends on world "platforms" for its economies of scale. While there may well be a security imperative to have manufacturing in the US (assuming you can also secure the entire supply chain), there's very little economic logic, particularly if you then can't export products profitably because of a perpetual trade war. Or your plants are embargoed owing to the occupation of Greenland.
If you're not going to give them money, why would they even bother - beyond some token announcements in principle to tide them over until the next administration (assuming there is one).
Sooo
You are against cutting the debt? Or you want these big businesses to get taxpayer money?
"We sat through the entire speech so you don't have to"
I guess you got to see the Democrats demonstrate how childish they are for the whole speech then! Did you laugh when the protesting old man with his cane got escorted out? Did you see the stupidity when they refused to applaud even for the no tax on tips announcement (Harris liked the idea so much she took it for her campaign)? Or even for the brain cancer survivor? I read they had little signs though and chose various colours for their respective grievances.
As Trump said there is nothing he can do to make them happy or smile. I guess they are not the party of joy now?
Pulling the funding requires Congress to revisit the Act
Since when has that stopped the Orange One?
What Trump talks about
Much of what Trump talks about never comes to pass in any case.
You may not like this, but, in his first term he clearly did not understand how to use the powers of the office of President. He has clearly had four years of the Biden administration to work out where he failed to get his own way, and importantly how to prevail now he is back in power. As he said in his speech, he has accomplished more in 47 days than a lot of administrations did in 4 years.
Now, I accept that you may heartily detest what he has done, but you cannot deny that he has done a lot of things. In addition, he has learnt not to hire staff who will object to his policies, but people who will carry them out. He has over 46 months left in office, so maybe let's not get carried away with how he failed before and assume he will continue to fail in the future.
This must be what Musk and Putin want? As they are clearly the ones in charge now in American politics.
Orange Cockwomble Ramble
“We sat through the entire speech so you don't have to”
Wow!! You have my deep respect. Now go and have a lie down in a dark room. You probably deserve it