Trump wants to kill $52.7 billion semiconductor chips subsidy law
Published On Mar 4, 2025, 10:25 PM
President Trump is calling for the elimination of the CHIPS Act, a law that supports semiconductor manufacturing in the U.S. with $52.7 billion in subsidies. He argues the funds are wasted and suggests using the money to reduce national debt. His position raises questions about the future of major investments in semiconductor production by companies like TSMC and Intel, which were incentivized by this law. Trump's proposed changes might affect ongoing projects and job creation in the tech sector.
Stock Forecasts
INTC
Negative
If the CHIPS Act is repealed, it could lead to reduced investment in semiconductor manufacturing in the U.S., impacting companies reliant on these subsidies. Following his announcement, there may be a negative sentiment in the semiconductor industry affecting stocks.
TSM
Negative
Investor confidence in TSMC may wane if Trump's administration seeks to limit current grants, given their significant planned investments in the U.S. and reliance on previous commitments from the Biden administration.
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