Trump's Repeal Call Unsettles CHIPS Act, Industry Concerns Rise

President Trump has called for the repeal of the CHIPS and Science Act during a recent congressional address, claiming it is ineffective and suggesting the funds be redirected to reduce national debt. His remarks came alongside the announcement of significant investments in U.S. semiconductor manufacturing, including a $100 billion commitment from Taiwan Semiconductor Manufacturing Company (TSMC) to expand operations in Arizona. However, many Republicans and industry leaders express concern that repealing the CHIPS Act could jeopardize ongoing projects and investments, as it provides substantial subsidies and loans critical for domestic chip production. Commerce Secretary Howard Lutnick is exploring ways to modify the act, potentially removing certain labor and oversight requirements, though a full repeal is unlikely given the bipartisan support the legislation initially received. Analysts warn that revoking the CHIPS Act could deter future investments and shift production overseas, ultimately undermining U.S. semiconductor independence. The reaction from lawmakers has been mixed, with some emphasizing the need to protect the funding that has already been allocated for expanding semiconductor manufacturing in the U.S.