Trump called the CHIPS Act a 'horrible thing.' Cutting off funding might not be so straightforward.
Published On Mar 5, 2025, 2:31 PM
President Trump criticized the CHIPS Act during a recent address, calling it a 'horrible thing' and suggesting that its remaining funds be repurposed. Despite this, sources indicate there are no immediate plans to repeal the bipartisan act, which has allocated around $36 billion for U.S. semiconductor projects. The act aims to boost domestic chip manufacturing and counter supply disruptions similar to those experienced during the COVID-19 pandemic. The current political climate does not favor significant changes to the act as many lawmakers value the jobs and growth it represents in their districts.
Stock Forecasts
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Positive
The ongoing support for the CHIPS Act suggests a continued growth in the semiconductor sector, which could benefit companies involved in chip manufacturing. Although political rhetoric could cause short-term volatility, the essential nature of the semiconductor industry in the U.S. and global supply chains indicates a long-term trend towards investment and expansion in this sector.
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