{"id":11904,"date":"2025-03-10T18:27:15","date_gmt":"2025-03-10T18:27:15","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/trumps-call-to-scrap-horrible-chip-program-spreads-panic\/"},"modified":"2025-03-10T18:27:15","modified_gmt":"2025-03-10T18:27:15","slug":"trumps-call-to-scrap-horrible-chip-program-spreads-panic","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/trumps-call-to-scrap-horrible-chip-program-spreads-panic\/","title":{"rendered":"Trump\u2019s Call to Scrap \u2018Horrible\u2019 Chip Program Spreads Panic"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">As President Trump <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/03\/04\/us\/politics\/transcript-trump-speech-congress.html\" title=\"\">addressed Congress last week<\/a>, he veered off script to attack a sensitive topic, <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/02\/28\/business\/economy\/chips-act-childcare.html\" title=\"\">the CHIPS Act, a bipartisan law<\/a> aimed at making the United States less reliant on Asia for semiconductors.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Republican lawmakers had sought and received reassurances over the past few months that the Trump administration would support the program Congress created. But halfway through Mr. Trump\u2019s remarks, he called the law a \u201chorrible, horrible thing.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cYou should get rid of the CHIP Act,\u201d <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/03\/04\/us\/politics\/transcript-trump-speech-congress.html\" title=\"\">he told Speaker Mike Johnson<\/a> as some lawmakers applauded.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The CHIPS program was one of the few things to unite much of Washington in recent years, as lawmakers on both sides of the aisle worked with private companies to draft a bill that <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/05\/08\/us\/politics\/chips-grants-fuel-industry-growth.html\" title=\"\">would funnel $50 billion<\/a> to rebuild the U.S. semiconductor industry, which makes the foundational technology used to power cars, computers and coffee makers. After President Joseph R. Biden Jr. <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2022\/08\/09\/us\/politics\/biden-semiconductor-chips-china.html\" title=\"\">signed it into law in 2022<\/a>, companies found sites in Arizona, New York and Ohio to construct new factories. The Commerce Department vetted those plans and began to dole out billions of dollars in grants.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Now, Mr. Trump <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/10\/26\/us\/politics\/trump-joe-rogan-chips-science-act.html\" title=\"\">is threatening to upend years of work<\/a>. Chip company executives, worried that funding could be clawed back, are calling lawyers to ask what wiggle room the administration has to terminate signed contracts, said eight people familiar with the requests.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">After the speech, Senator Todd Young, the Indiana Republican who championed CHIPS, said he reached out to the White House to seek clarity about Mr. Trump\u2019s attack because the criticism was \u201cin tension\u201d with the administration\u2019s previous support.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cIf it needs to transform into a different model over a period of time, I\u2019m certainly supportive of that,\u201d Mr. Young said last week. \u201cBut let\u2019s be clear, the CHIPS and Science Act, at least the chips portion, has mostly been implemented. It has been one of the greatest successes of our time.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The United States pioneered the semiconductor industry, designing the first microchips and the processes for making them, allowing it to become an early tech leader. But in the 1980s, companies began outsourcing most production to Asia. <\/p>\n<p class=\"css-at9mc1 evys1bk0\">U.S. lawmakers began pushing to rebuild domestic chip production after the pandemic created a global chip shortage that forced some <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2021\/02\/18\/business\/economy\/chip-shortage-semiconductors-manufacturing-biden.html\" title=\"\">U.S. auto factories to shutter<\/a>, resulting in the CHIPS Act.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">But the Trump administration has already taken steps to whittle away at the program.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In late February, Michael Grimes, a senior official at the Department of Commerce and former investment banker at Morgan Stanley, conducted brief interviews with employees of the CHIPS Program Office, which oversees the grants.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In interactions some described as \u201cdemeaning,\u201d Mr. Grimes asked employees to justify their intellect by providing test results from the SAT or an IQ test, said four people familiar with the evaluations. Some were asked to do math problems, like calculate the value of four to the fourth power or long division.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Last week, the Commerce Department laid off 40 of the CHIPS office employees, nearly a third of the entire team, these people said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The administration has also begun discussing changes to projects that received chip-related subsidies, according to three people familiar with the internal conversations. The Biden administration gave preferential treatment for recipients that hired unionized construction workers and provided child care for employees, guidelines that could be changed, the people said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The reviews and layoffs were previously reported by <a class=\"css-yywogo\" href=\"https:\/\/www.reuters.com\/technology\/trump-prepares-change-us-chips-act-conditions-sources-say-2025-02-13\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Reuters<\/a> and <a class=\"css-yywogo\" href=\"http:\/\/cnbc.com\/2025\/03\/04\/chips-act-office-lays-off-about-a-third-of-its-staff-sources-say.html\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">CNBC<\/a>.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">On Wednesday, the day after Mr. Trump\u2019s speech, the Semiconductor Industry Association organized a call with member companies, said three people familiar with the discussion. During the call, people chalked up Mr. Trump\u2019s frustration with the law to personal animus with Mr. Biden.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Some said that Mr. Trump\u2019s criticism could create challenges by drawing public attention to their projects, according to the people. But many also expressed confidence that their legal agreements with the Commerce Department couldn\u2019t be changed.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The Semiconductor Industry Association declined to comment.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">So far, the Commerce Department has signed contracts to grant more than $36 billion in federal subsidies under the CHIPS Act. Samsung, Intel, Micron, Taiwan Semiconductor Manufacturing Company, known as TSMC, and others in response have pledged to invest hundreds of billions of dollars in U.S. chip-making facilities.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Trump has proposed replacing those incentives with tariffs that increase the cost of making chips overseas. On Tuesday, he said that the threat of tariffs had compelled <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/03\/03\/technology\/tsmc-investment-trump.html\" title=\"\">TSMC, the world\u2019s biggest maker of advanced semiconductors, to increase its U.S. investment by $100 billion<\/a> and double the number of plants it is building in Arizona, to six.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe don\u2019t have to give them money,\u201d Mr. Trump said. \u201cWe just want to protect our businesses and our people, and they will come because they won\u2019t have to pay tariffs if they build in America.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">It\u2019s unclear how much of a factor tariffs played in TSMC\u2019s plans. The company had already acquired land and drafted plans to expand its footprint in Arizona once it had the customers to support three additional plants, said three people familiar with the CHIPS Act. TSMC is investing earlier than previously planned, partly because customers like Apple and Nvidia committed to buying more U.S.-made chips, the people added.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-6\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">TSMC and Intel declined to comment. Micron and Samsung didn\u2019t respond to requests for comment.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Lawyers and industry executives have said that tariffs on chips themselves are not very effective because the United States imports few chips directly. Chips are typically sent directly to electronics factories, generally in Asia, where they are placed in laptops, cellphones and appliances before being imported into the United States. <\/p>\n<p class=\"css-at9mc1 evys1bk0\">Some in the chips industry have been formulating plans to try to convince Mr. Trump of the law\u2019s value since the election, including at the industry\u2019s annual gathering in San Jose, Calif., in November. The initial legislation was spurred partly by a request from officials during the first Trump administration that TSMC invest in the United States, which kick-started an effort from Congress to secure funding for the company.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">That soon snowballed into a broader effort to fund the industry, as other companies and lawmakers wanted to participate.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe need to go and make sure that our colleagues in Washington remember that, embrace that and continue to invest in our incredible industry,\u201d said Deirdre Hanford, the chief executive of Natcast, a nonprofit created by CHIPS to oversee semiconductor technology development.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-7\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The risk of losing funding has caused some industry executives to complain that the government was too slow to provide subsidies in the first place. While the law went into place in August 2022, the Biden administration spent months carefully vetting each project. Most of its largest grants were completed after the election.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIs it perfect? No,\u201d said Senator Mark Warner, a Virginia Democrat, during a Washington tech and policy conference last week. \u201cBut without it, there would not have been another fabrication facility built in America.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/03\/10\/technology\/trump-chips-act.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As President Trump addressed Congress last week, he veered off script to attack a sensitive topic, the CHIPS Act, a<\/p>\n","protected":false},"author":1,"featured_media":11905,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[169,770,123,239,114,288,751,2345,113,111],"class_list":["post-11904","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-arizona","tag-computer-chips","tag-computers-and-the-internet","tag-customs-tariff","tag-donald-j","tag-government-contracts-and-procurement","tag-protectionism-trade","tag-taiwan-semiconductor-manufacturing-company-ltd","tag-trump","tag-united-states-politics-and-government"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trump\u2019s Call to Scrap \u2018Horrible\u2019 Chip Program Spreads Panic - World 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