Washington, D.C. – Former President Donald Trump has set off a political and economic firestorm by calling for the dismantling of the CHIPS and Science Act, a bipartisan law that allocated $52.7 billion to boost the U.S. semiconductor industry. The move has stunned lawmakers and industry leaders, who warn that repealing the act could severely weaken America’s position in the global technology race.
The CHIPS Act, signed into law in 2022, was designed to reduce U.S. reliance on foreign microchips, particularly from China. It spurred major investments in semiconductor manufacturing across the country, with companies like Intel and Nvidia committing billions of dollars to new facilities. If the law is reversed, those projects could be jeopardized, leaving the U.S. vulnerable to supply chain disruptions and foreign influence over critical technology.
Lawmakers from both parties have expressed concerns over Trump’s demand. Republican Senator John Cornyn, a key supporter of the CHIPS Act, warned that repealing it would be a “massive gift” to China. Meanwhile, Democrats argue that the law has already created thousands of jobs and positioned the U.S. as a leader in chip production.
Industry analysts say that without government incentives, semiconductor companies may shift production elsewhere, setting the country back decades in technological innovation. With Congress now scrambling to respond, the future of the CHIPS Act remains uncertain.
For more articles on Donald J. Trump, visit our Donald J. Trump category.