Biden Administration Rushes CHIPS Act Grants

The Biden administration is racing to finalize the distribution of nearly $39 billion in grants allocated under the CHIPS Act before President-elect Donald Trump takes office, as many funds are still tied up in complex negotiations. Secretary of Commerce Gina Raimondo emphasized the urgency of obligating the funds to support domestic semiconductor manufacturing, with significant awards already provisionally granted to companies like Intel and TSMC. Notably, TSMC has received a finalized $6.6 billion subsidy for its factory projects in Arizona. Trump has criticized the CHIPS Act and hinted at a shift toward tariffs instead of subsidies to boost domestic chip production. While the fate of these funding programs remains uncertain with the upcoming administration, many projects are crucial to U.S. economic and national security. Industry experts warn that without swift action, the U.S. may lag in the global semiconductor race.