Exclusive: Trump prepares to change US CHIPS Act conditions, sources say
Published On Feb 13, 2025, 3:27 PM
The article discusses the White House's plans to renegotiate the U.S. CHIPS and Science Act's 2022 semiconductor subsidies, which total $39 billion. This review is being conducted by the new administration under Donald Trump, who is considering changes to existing agreements that might not align with his policies, particularly in relation to labor requirements and expansion plans of subsidized companies, some of which have announced overseas expansions. The Semiconductor Industry Association is also engaging in discussions to streamline requirements and ensure continued U.S. leadership in chip technology.
Stock Forecasts
INTC
Negative
Concerns over potential changes to the CHIPS Act could negatively impact semiconductor companies, especially those reliant on current subsidy agreements. If negotiations lead to stricter conditions or reduced funding, companies like Intel and TSMC might see operational disruptions or shifts in strategy.
TSM
Positive
As the administration evaluates the CHIPS Act and semiconductor strategies, companies engaged in domestic manufacturing may benefit from favorable adjustments or increased funding, especially if conditions are made less stringent.
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