In a significant address to Congress on March 3, 2025, former President Donald Trump urged lawmakers to terminate the $52 billion Semiconductor Manufacturing and Innovation Act, commonly referred to as the Chips Act. Speaking to a joint session, Trump expressed his disapproval of the Act, stating it has not fulfilled its promise of bolstering domestic semiconductor production and is contributing to rising consumer prices. He emphasized the need to prioritize American interests and suggested reallocating the funds to support struggling families instead. ‘The Chips Act was supposed to make us more competitive, but all it has done is help big corporations. We must do better for the American people,’ Trump asserted. This call to action comes as semiconductor shortages continue to impact various sectors of the economy. Analysts have noted that the Chips Act was originally intended to restore domestic semiconductor manufacturing capabilities and reduce dependence on foreign supply chains, particularly from countries like Taiwan and China. Trump’s comments raised concerns among industry leaders who argue that eliminating the subsidy could exacerbate the ongoing global chip crisis. ‘Investments in semiconductor manufacturing are crucial to our economic future, and we need to maintain the support granted by the Chips Act,’ stated Tim Monterosso, CEO of chip manufacturer InnovateSemiconductor. The former president’s stance marks a substantial shift from the bipartisan support the Chips Act has received since its passing in 2022, which allocated funds to foster innovation and production capabilities in the United States. As the discourse around technology and manufacturing continues within Congress, Trump’s announced position is likely to stir additional debate.
Trump Calls for End to $52 Billion Chips Act in Joint Address to Congress
