The White House is about to renegotiate the Chip and Science Act award, indicating a delay in future semiconductor payments.
People, along with a third source, say the new administration is considering projects awarded under the 2022 Act, with a $39 billion subsidy aimed at increasing the power of US domestic semiconductors. That's what I mean.
Sources say Washington will renegotiate several deals after assessing and modifying current requirements. The extent of possible changes and how they would affect the already finalized contracts were not immediately clear. It was unclear whether any measures were still being taken.
“The Chip Program Office has told us that certain conditions that do not match President (Donald) Trump's executive order and policy are currently under review for all chip direct funding agreements,” Global Warfers spokeswoman Mann, Leah Penn, said in a statement to Reuters.
Taiwan's GlobalWafers said it has not been directly informed by Washington about the terms or changes to the award, but it plans to receive $406 million in US government grants for projects in Texas and Missouri . The company is currently planning to receive subsidies only after achieving certain milestones in the second half of 2025.
The winners of each award have clear terms and milestones in their contract.
Four sources with knowledge of the debate told Reuters that the White House is concerned about many of the conditions underpinning the $39 billion chips and the Scientific and Law Industry Subsidy.
These include additional provisions, including requirements added to the contract managed by President Joe Biden.
The White House and the Commerce Department did not immediately respond to requests for comment.
The Semiconductor Industry Association, the leading industry association in the CHIP industry, has begun asking its members how they can improve their programme.
However, David Isaacs, the group's vice president of government affairs, said: “It is important that both manufacturing incentives and research programs go without any confusion, and we are ready to work with Commerce Secretary Candidate (Howard) Rutnick and other members of the Trump administration. Streamline the program's requirements. and to achieve a common goal of strengthening US leadership in CHIP Technology.”
Since taking office, Trump has issued a series of executive orders aimed at dismantling diversity, equity and inclusion programs across the federal government and the private sector.
One source said the White House was also frustrated by companies that accepted Chips Act subsidies and later announced key overseas expansion plans, including China. The law allowed investment in China.
For example, Intel announced a $300 million investment in China's parliament and testing facilities in October after saying it had won a massive award under the Chips Act.
Many of the biggest recipients of the chips method, including Intel, TSMC, Samsung Electronics, and SK Hynix, all have major manufacturing facilities in China.
Intel has announced that it has received two payments of $2.2 billion in funding from the Chips Act, but declined to comment.
A TSMC spokesperson said the company received a $1.5 billion chips act before the new administration entered the agreement, subject to the milestone terms of the agreement.
The spokesman declined to comment on any possible changes to its contract under Trump, but said the company remains involved with the chip program office.
Samsung, SK Hynix and Hemlock Semiconductor declined to comment, and Bosch introduced Reuters to the Chips office.
Micron and GlobalFoundries did not respond to requests for comment.
