While addressing Congress, President Trump calls to “get rid” of the $52B CHIPS and Science Act and use the leftover amount to “reduce debt or any other reason”

President Donald Trump called for an end to a landmark $52 billion semiconductor subsidy program that's spurred …

Bloomberg 2025-03-05 Mackenzie Hawkins

Context & Ripple Effects

The CHIPS and Science Act was created as a federal semiconductor-manufacturing and R&D commitment, with its implementation plan dividing funding among grants, expanded manufacturing, and research. The administration had already begun cutting staff at the office responsible for administering the program, making the repeal call a sharper challenge to the program’s operating capacity as well as its funding.

The significance is not merely rhetorical: the law’s original purpose was to direct public capital toward domestic chip production rather than rescue failing businesses, as the government had framed the chip fund around national-security goals.

First-order effects

Congress and CHIPS recipients face new uncertainty over whether remaining program funds will be available, while the Commerce office administering them is under staffing pressure.
A presidential call does not itself repeal the law; any removal or redirection of appropriated funds depends on congressional action.

Second-order effects

Companies planning chip projects around federal support may delay financing and construction decisions until the program’s status is clearer, increasing the value of alternative capital and commitments.
Lawmakers must weigh the administration’s debt-reduction argument against the program’s stated manufacturing and national-security objectives, creating pressure for either a defense, revision, or wind-down of the subsidy framework.

Third-order effects

If federal chip incentives become vulnerable to rapid policy reversals, long-horizon manufacturing investment may place greater weight on contractual certainty and non-federal financing rather than announced subsidies.
The episode tests whether industrial policy can sustain multi-year semiconductor-capacity goals across administrations—a central constraint in an industry with long buildout cycles.

The trend: This is one data point in the contest between strategic public funding for domestic semiconductor capacity and a policy agenda favoring reduced federal spending.

Discussion

@repgregstanton Rep. Greg Stanton on bluesky
Trump wants to “get rid of the CHIPS Act”?! — This is a direct attack on Arizona's semiconductor industry and tens of thousands of Arizona workers. TSMC's $100 billion investment announced yesterday would not have happened without this bipartisan bill, period.
@jbendery Jen Bendery on bluesky
Trump said the CHIPS Act “is a horrible horrible thing” and turned around to tell Mike Johnson to “get rid of the CHIP Act” and use whatever is leftover to “reduce debt.” — Two dozen House GOPers voted for the CHIPS Act — and have urged Johnson to protect it.
@fernandez.house.gov Rep. Teresa Leger Fernández on bluesky
Trump wants to get rid of the CHIPS and Science act. — Remember, Intel is investing $3.5 BILLION in NM to build an advanced facility for semiconductors, supporting 700 manufacturing jobs and 1,000 construction jobs thanks to CHIPS. — That's what he wants to take from NM.
@malcolmhq @malcolmhq on bluesky
Trump's at it again—trying to gut the CHIPS and Science Act, which created 115,000+ good-paying union jobs. — Repealing it would devastate working families and send jobs overseas. — #TrumpKillsJobs #StateoftheUnion
@imoutofit @imoutofit on bluesky
And idiot Vance happily clapped his paws knowing full well that the CHIPS act funded the construction of the Intel plant in his very own state.
@premthakker Prem Thakker on bluesky
Half the Republican caucus went home after the CHIPS Act passed and took credit for it and now Trump is saying to get rid of it
@ddayen David Dayen on bluesky
Vance is not very happy clapping over getting rid of the CHIPS Act, whose biggest beneficiary was Intel's plant in Ohio
@ryanobles Ryan Nobles on threads
Trump just hammered the CHIPS act which was overwhelmingly passed with bi-partisan support and provided billions of dollars in incentives to companies across America. 24 Republicans voted for it in the House and 17 Republicans voted for it in the Senate. Trump just said it shou…
@senatorwarnock Senator Reverend Raphael Warnock on x
The President just called for the repeal of the CHIPS Act which includes investments in Georgia technical colleges, advanced manufacturing jobs, and small businesses. All to pay for tax cuts for the ultra-wealthy. This is wrong and I will oppose any efforts to repeal it.
@senatorlbr Senator Lisa Blunt Rochester on x
The *bipartisan* CHIPS and Science Act has brought billions in manufacturing investments in communities all across the country. Republicans know that - they loudly cheered those investments. This is what Trump wants to repeal?
@normornstein Norman Ornstein on x
Mike Johnson applauds as Trump trashes the CHIPS Act. Mike Johnson voted for it. Toady.
@yassaminansari Yassamin Ansari on x
All the Republicans reluctantly standing and clapping in support of Trump suggesting they cut the CHIPS Act. Remember that when they brag about the related investments.
@repgregstanton Rep. Greg Stanton on x
Trump wants to “get rid of the CHIPS Act”?! This is a direct attack on Arizona's semiconductor industry and tens of thousands of Arizona workers. TSMC's $100 billion investment announced yesterday would not have happened without this bipartisan bill, period.
@andrewdesiderio Andrew Desiderio on x
Trump is slamming the CHIPS Act, a major legislative initiative championed by Sens. Todd Young (R-Ind.) and John Cornyn (R-Texas), among others
@atrupar Aaron Rupar on x
about 10 Republicans clap as Trump calls on Congress to repeal the chips act Biden signed [video]
@jakesherman Jake Sherman on x
“Your CHIPS Act is a horrible, horrible thing,” Trump says to a Congress which passed the CHIPS Act on a bipartisan basis.
@reprichardneal Rep. Richard Neal on x
The CHIPS and Science Act, which received biparistan support, invested $53 billion dollars to reinvigorate our chip supply chain. In just 2 years, dozens of projects across the U.S. received funding, including the construction of new semiconductor manufacturing facilities.
@statisticurban Hunter on x
The CHIPS Act nearly quadrupled US investment on high tech manufacturing. Aren't we supposed to be bringing back manufacturing? [image]
@robbysoave Robby Soave on x
Okay the Chips Act is definitely bad, Trump is right about that, but he did not do the best job of explaining why. https://reason.com/...
@itifdc @itifdc on x
The Trump administration fundamentally fails to understand that the $100B TSMC investment it lauded yesterday is the direct result of the very CHIPS act it misguidedly derided tonight. https://www.bloomberg.com/...
@dc_dewitt David DeWitt on x
Vice President J.D. Vance just clapped about getting rid of the CHIPS and Science Act that's giving $7.8 billion in direct funding for the Intel microchip plant in central Ohio.
@kylekulinski @kylekulinski on x
Trump just bragged about bringing back CHIP manufacturing: 1 - Biden did that with the CHIPS act, not him. 2 - Trump announced he was freezing the funding for that last week! 3 - That kills 115,000 manufacturing jobs The man is literally a world record shattering liar it's
@cenkuygur Cenk Uygur on x
TSMC, the Taiwanese company that Trump bragged would invest $100 billion in US because of him got $6.6 subsidy and 25% tax credit from Biden's CHIPS Act. I hate corporate subsidies, so I don't know if it's worth it to bring them here, but it was Biden, not Trump.
@rubengallego Ruben Gallego on x
Getting rid of the CHIP act just to be vindictive against Biden will destroy Arizona's economy. #SOTU
@govkathyhochul Governor Kathy Hochul on x
The CHIPS & Science Act is the reason Micron is bringing $100 billion and 50,000 jobs to Central New York. Trump just said he wants to get rid of it.
@ian_mariani Ian Mariani on x
Watching Trump brag about TSMC investing in America while blasting the CHIPs Act in back to back sentences... [image]
@factpostnews @factpostnews on x
Trump: We should get rid of the CHIPS Act. Your CHIPS Act is a horrible, horrible thing (The CHIPS Act is a bipartisan law that is bringing thousands of manufacturing jobs back to America) [video]
@amymcgrathky Amy McGrath on x
Guaranteed that Trump has no idea what was in the CHIPs and Science Act.
@andrewcapasso_ Andrew Capasso on x
@APompliano They've been investing billions into chip manufacturing because of the CHIPS act mfer it has nothing to do with tariffs. So disingenuous [image]
@ibew @ibew on x
The CHIPS Act is putting construction workers across America to work building high-tech factories that is bringing the semiconductor industry back to America. https://www.ibew.org/...
r/politics r on reddit
Trump Calls for End to $52 Billion Chips Act Subsidy Program
r/StockLaunchers r on reddit
Trump wants to kill $52.7 billion semiconductor chips subsidy law
r/intelstock r on reddit
Trump asks congress to repeal Chips Act
r/wolfspeed_stonk r on reddit
Trump wants to kill $52.7 billion semiconductor chips subsidy law | Reuters
r/Destiny r on reddit
Trump Calls for End to $52 Billion Chips Act Subsidy Program

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