{"id":4771,"date":"2025-06-05T06:22:37","date_gmt":"2025-06-05T06:22:37","guid":{"rendered":"https:\/\/prepsaret.com\/news\/?p=4771"},"modified":"2025-06-05T06:22:37","modified_gmt":"2025-06-05T06:22:37","slug":"trump-administration-reassesses-biden-era-semiconductor-grants","status":"publish","type":"post","link":"https:\/\/prepsaret.com\/news\/trump-administration-reassesses-biden-era-semiconductor-grants\/","title":{"rendered":"Trump Administration Reassesses Biden-Era Semiconductor Grants"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Biden administration\u2019s multi-billion-dollar effort to strengthen domestic semiconductor manufacturing is now under review by President Donald Trump\u2019s team, with some agreements already being revised and others potentially scrapped.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Commerce Secretary Howard Lutnick revealed during a Senate Appropriations Committee hearing on Wednesday that certain grants distributed through the CHIPS and Science Act are being renegotiated to ensure better returns for the American public.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Lutnick, some of the original deals appeared to be &#8220;just overly generous.&#8221; He stated, \u201cAll the deals are getting better, and the only deals that are not getting done are deals that should have never been done in the first place.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">His comments suggest that not every agreement will survive the review process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CHIPS Act, signed into law by President Joe Biden in 2022, earmarked $52.7 billion to bolster U.S. semiconductor research and production while enticing major chipmakers to shift operations from Asia to American soil.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among the beneficiaries were global giants such as Taiwan\u2019s TSMC, South Korea\u2019s Samsung and SK Hynix, and U.S. firms like Intel and Micron.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although the grant agreements were approved before Biden left office, much of the funding had yet to be distributed, pending company milestones on factory expansion.<\/span><\/p>\n<p><b>Related story: <\/b><a href=\"https:\/\/prepsaret.com\/news\/u-s-launches-doudna-supercomputer-to-drive-ai-and-genomics-innovation\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">U.S. Launches \u2018Doudna\u2019 Supercomputer to Drive AI and Genomics Innovation<\/span><\/a><\/p>\n<h2 style=\"text-align: center;\"><b>Boosting Returns Without Raising Costs<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Lutnick highlighted the renegotiation with TSMC as a major success. The Taiwanese manufacturer originally pledged to invest $65 billion but later increased that figure to $100 billion.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remarkably, the company\u2019s $6 billion grant from the U.S. remained unchanged. \u201cWe were able to modify the award for the same $6 billion of (government) funding,\u201d Lutnick noted.<\/span><\/p>\n<p><a href=\"https:\/\/www.tsmc.com\/english\"><span style=\"font-weight: 400;\">TSMC<\/span><\/a><span style=\"font-weight: 400;\"> made its new investment pledge in March, but it remains unclear if that directly correlates with the renegotiation. The company declined to comment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In February, Reuters had reported that the White House was already exploring revisions to some semiconductor awards and anticipated delays in disbursements.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Addressing additional concerns, Lutnick affirmed the administration&#8217;s alignment with the objective of securing more than half of global AI computing capacity within the U.S.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He responded to criticism surrounding a Trump-era agreement allowing the UAE access to American AI chips, which some fear could compromise U.S. technological dominance.<\/span><\/p>\n<p><b>Read next:<\/b> <a href=\"https:\/\/prepsaret.com\/news\/meta-invests-in-nuclear-energy-to-power-ai-and-data-centers\/\"><span style=\"font-weight: 400;\">Meta Invests in Nuclear Energy to Power AI and Data Centers<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Getting ready for your CompTIA exam? Kickstart your prep with Prepsaret and practice with real exam-style <\/span><a href=\"https:\/\/prepsaret.com\/comptia-practice-exam\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">questions <\/span><\/a><span style=\"font-weight: 400;\">you&#8217;ll actually face on test day.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Biden administration\u2019s multi-billion-dollar effort to strengthen domestic semiconductor manufacturing is now under review by President Donald Trump\u2019s team, with some agreements already being revised and others potentially scrapped.\u00a0 Commerce Secretary Howard Lutnick revealed during a Senate Appropriations Committee hearing on Wednesday that certain grants distributed through the CHIPS and Science Act are being renegotiated [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":4775,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[330],"tags":[],"class_list":["post-4771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.4 (Yoast SEO v25.3) - 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