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Trump Calls for Repeal of $52.7 Billion Semiconductor Subsidy Law

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Former President Donald Trump has called for the repeal of the landmark 2022 bipartisan CHIPS and Science Act, which allocated $52.7 billion in subsidies for semiconductor manufacturing and production. Trump, in a speech to Congress on Tuesday, criticized the act, describing it as a “horrible, horrible thing” and argued that the money allocated had not been effectively spent. He urged lawmakers to cancel the CHIPS Act and redirect the remaining funds towards reducing the national debt.

The CHIPS Act, signed by President Joe Biden in August 2022, includes $39 billion for U.S. semiconductor manufacturing, along with $75 billion in government lending authority aimed at bolstering the country’s tech industry and addressing national security concerns related to semiconductor imports. The law has been praised by Commerce Secretary Howard Lutnick, who previously expressed his desire to review the awards finalized under Biden’s administration, which facilitated major semiconductor firms such as Samsung, Intel, Taiwan Semiconductor Manufacturing Company (TSMC), and Micron in establishing factories in the U.S.

Trump’s remarks mark his strongest criticism of the CHIPS Act, suggesting that avoiding new tariffs would be sufficient to encourage domestic semiconductor production. Critics, however, argue that the law is crucial for securing investments, such as TSMC’s $100 billion plan to build five chip facilities in the U.S., which would create tens of thousands of jobs. New York Governor Kathy Hochul highlighted that Micron’s $100 billion investment in Central New York, which could generate 50,000 jobs, was a direct result of the CHIPS Act.

While Trump’s position may undermine the funding for key semiconductor projects, officials are concerned that repealing the law could harm Arizona’s semiconductor industry and jeopardize job creation. Recent reports also indicated significant layoffs within the U.S. Commerce Department, which oversees the semiconductor subsidies, raising questions about the future of the industry under a potential new administration.

GlobalFoundries Appoints Tim Breen as New CEO

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GlobalFoundries, the world’s third-largest contract chipmaker, announced on Wednesday that Tim Breen will be its new CEO. Breen, who joined the company in 2018 and has served as its Chief Operating Officer since 2023, succeeds Thomas Caulfield, who will transition to the role of executive chairman.

Shares of GlobalFoundries remained mostly unchanged following the announcement. Before his tenure at GlobalFoundries, Breen held a senior executive position at Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund and GlobalFoundries’ largest stakeholder.

In addition to Breen’s appointment, GlobalFoundries also announced that Niels Anderskouv, a former executive at Texas Instruments, will be the company’s new president. Anderskouv will replace Breen as Chief Operating Officer and will oversee manufacturing and product strategy.

Caulfield, who led the company through its 2021 IPO and had been CEO since 2018, praised Breen and Anderskouv for their leadership and vision, stating that together they are well-positioned to drive GlobalFoundries forward.

The company, which stepped back from the high-cost race to produce the most advanced chips—opting instead to focus on specialized markets such as radio-frequency chips and automotive semiconductors—has seen increased demand for its products, especially due to a recovery in the smartphone market. Despite this growth, GlobalFoundries continues to face challenges in the industrial and automotive sectors.

In 2024, GlobalFoundries also benefited from government support, receiving approximately $1.5 billion in subsidies aimed at boosting U.S. chip manufacturing.

 

TSMC Begins Production of Advanced 4-Nanometer Chips in Arizona

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Taiwan Semiconductor Manufacturing Co (TSMC) has officially started producing advanced four-nanometer chips at its Arizona facility, marking a significant milestone in the U.S. semiconductor industry. U.S. Commerce Secretary Gina Raimondo revealed the news, calling it a historic achievement for the United States, which now manufactures cutting-edge chips on American soil for the first time.

This breakthrough follows TSMC’s $6.6 billion grant from the U.S. Department of Commerce to bolster semiconductor production in Phoenix, Arizona. Raimondo emphasized the importance of this development, noting that the chips produced are on par with Taiwan’s high-quality standards in both yield and performance. She highlighted the achievement as one that many doubted could happen, marking a critical moment in the U.S. push for domestic semiconductor production.

TSMC, the world’s leading contract chipmaker and a key supplier for tech giants like Apple and Nvidia, has yet to publicly comment on the start of production. However, this move comes after TSMC’s agreement in April to significantly expand its Arizona operations. The company plans to invest an additional $40 billion, bringing its total investment to $65 billion, and will build a third fabrication plant by 2030.

This production milestone is part of the broader $52.7 billion U.S. initiative to boost semiconductor manufacturing and research within the country. Raimondo revealed that convincing TSMC to expand its U.S. plans was no easy feat, and significant negotiations were required.

Looking ahead, TSMC intends to produce even more advanced chips, including two-nanometer technology, at its second Arizona fab, scheduled for 2028. By then, the company plans to use its most advanced “A16” chip manufacturing technology in the U.S. as part of this expansion. The U.S. government has also supported TSMC’s efforts with up to $5 billion in low-interest loans.

Raimondo’s goal is for the U.S. to produce 20% of the world’s leading-edge logic chips by 2030, a dramatic increase from its current share of zero. TSMC expects to begin high-volume production in its first U.S. fab by the first half of 2025.

Additionally, in a related development, the Commerce Department awarded $407 million to support Amkor Technology’s $2 billion advanced semiconductor packaging facility in Arizona. This facility, set to be the largest of its kind in the U.S., will focus on packaging and testing chips for industries such as autonomous vehicles, 5G/6G, and data centers, with Apple expected to be its first major customer.