financetom
Technology
financetom
/
Technology
/
Exclusive-Trump prepares to change US CHIPS Act conditions, sources say
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Exclusive-Trump prepares to change US CHIPS Act conditions, sources say
Feb 13, 2025 12:33 PM

WASHINGTON/SINGAPORE/TAIPEI (Reuters) - The White House is seeking to renegotiate U.S. CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told Reuters.

The people, along with a third source, said the new administration is reviewing the projects awarded under the 2022 law, meant to boost American domestic semiconductor output with $39 billion in subsidies. 

Washington plans to renegotiate some of the deals after assessing and changing current requirements, according to the sources. The extent of the possible changes, and how they would affect agreements already finalized, was not immediately clear. It was not known whether any action has yet been taken.

"The CHIPS Program Office has told us that certain conditions that do not align with President (Donald) Trump's executive orders and policies are now under review for all CHIPS Direct Funding Agreements," GlobalWafers spokesperson Leah Peng said in a statement to Reuters.

Taiwan's GlobalWafers, which said it has not been notified directly by Washington of any changes to the conditions or terms of their awards, is set to receive $406 million in U.S. government grants for projects in Texas and Missouri. The company is currently set to receive subsidies only after it achieves specific milestones later in 2025.

Each award recipient has distinct terms and milestones in their agreements. 

Four sources with knowledge of the discussions told Reuters that the White House is concerned about many of the terms underpinning the $39 billion Chips and Science Act industry subsidies. 

Those encompass additional clauses, including requirements added into contracts by the administration of President Joe Biden, that recipients must use unionized labor to build factories and help provide affordable childcare for factory workers.

The White House and the U.S. Department of Commerce did not immediately respond to requests for comment. 

Since taking office, Trump has issued a series of executive orders aimed at dismantling diversity, equity and inclusion programs across the federal government and the private sector.

One of the sources said the White House is also frustrated by companies that accepted CHIPS Act subsidies and then announced significant overseas expansion plans, including in China. The law allowed some investments in China.

Intel ( INTC ), for example, announced a $300 million investment in a Chinese assembly and test facility in October, after saying in March that it had won a major award under the CHIPS Act. 

Many of the biggest recipients of the CHIPS Act funding - including Intel ( INTC ), TSMC, Samsung Electronics ( SSNLF ) and SK Hynix ( HXSCF ) - all have major manufacturing facilities in China.

Intel ( INTC ) disclosed it had received two payments totaling $2.2 billion in funding from the CHIPS Act, but declined to comment.

A TSMC spokesperson said the company had received $1.5 billion in CHIPS Act monies before the new administration came in as per the milestone terms of its agreement.

The spokesperson declined comment on any possible changes to its agreement under Trump but said the company is continuing to engage with the Chips Program Office. 

Samsung, SK Hynix ( HXSCF ) and Hemlock Semiconductor declined to comment, while Bosch referred Reuters to the Chips Office. Micron and GlobalFoundries ( GFS ) did not respond to requests for comment.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Demystifying Roper Techs: Insights From 5 Analyst Reviews
Demystifying Roper Techs: Insights From 5 Analyst Reviews
Jul 25, 2024
5 analysts have expressed a variety of opinions on Roper Techs over the past quarter, offering a diverse set of opinions from bullish to bearish. The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings...
SK Hynix considering listing US subsidiary Solidigm -media report
SK Hynix considering listing US subsidiary Solidigm -media report
Jul 25, 2024
SEOUL, July 25 (Reuters) - South Korea's SK Hynix ( HXSCF ) is considering listing its U.S. subsidiary Solidigm to raise funds to expand production facilities in response to an upturn in memory chip demand, the Korea Economic Daily newspaper reported on Thursday. The U.S. subsidiary of the world's second-largest memory chip maker produces enterprise solid-state drives (eSSDs) which are...
Analysis-Europe welcomes Middle East money but some deals face headwinds
Analysis-Europe welcomes Middle East money but some deals face headwinds
Jul 25, 2024
LONDON/DUBAI (Reuters) - As Abu Dhabi's ADNOC sets its sights on an 11.7 billion euro ($12.74 billion) takeover of German chemical maker Covestro ( CVVTF ) in what would be the largest European acquisition by a Middle Eastern buyer in at least 16 years, it marks a recent upswing in dealmaking between the regions. More than $24 billion in acquisitions...
The lower the AI exposure, the bigger the problem for Europe's chip firms
The lower the AI exposure, the bigger the problem for Europe's chip firms
Jul 25, 2024
(Reuters) - Shares in European semiconductor firms less exposed to AI chips slumped on Thursday as falling demand from their key automotive and industrial clients hit business prospects, on top of a wider sector correction. Chip component suppliers like ASML and ASM International are more exposed to the booming AI chip market and demand from high-end tech clients like Nvidia,...
Copyright 2023-2025 - www.financetom.com All Rights Reserved