PHOENIX (AZ FAMILY) — Semiconductor manufacturers are concerned about the future of CHIPS and science law under President-elect Donald Trump and are rushing to finalize deals with the Biden administration before he leaves office.
Both TSMC and Intel are building huge chip manufacturing plants in Arizona with the help of more than $31 billion in federal grants and CHIPS Act loans.
No state was promised more initial funding through legislation than Arizona, but that money has yet to be disbursed.
President Trump criticized the law in the days before the election, and Republican leaders in Congress are debating ways to reform the law.
“That tip deal was so bad,” President Trump said on the Joe Rogan Podcast in October.
President Trump said the federal government is giving billions of dollars in subsidies to “wealthy corporations.” He said instead of incentives, the right way to encourage domestic manufacturing is to impose tariffs.
“We’ve got to get them to spend money in the United States, and those factories will be open. They’ll provide the funding. We don’t have to spend a dime,” Trump said. Ta.
U.S. Sen. Mark Kelly said President Trump’s comments amounted to a threat to cancel the bill.
“He wants to repeal CHIPS and the Science Act, which would result in tens of thousands of Arizona jobs being laid off,” Kelly said.
House Speaker Mike Johnson said last week that Republicans “will probably try” to repeal the law. He later issued a statement saying Republicans would work to streamline the law rather than repeal it.
Business leaders believe President Trump has limited authority to unilaterally overturn the bill, especially if companies reach an agreement with the Biden administration by the end of the year.
The Trump administration could change regulations added by the Commerce Department, including environmental regulations and requirements for unions to utilize the labor force and provide child care to workers.
TSMC is investing $65 billion to build the Phoenix manufacturing facility, making it the largest investment in Arizona history. The project is expected to create more than 25,000 jobs, including 6,000 permanent manufacturing jobs.
TSMC issued a statement saying, “There are no changes to our investment plans in the United States.”
Intel is developing a $32 billion project in Chandler that is expected to create 3,000 manufacturing and 7,000 construction jobs. The company expressed optimism and emphasized how the legislation is consistent with President Trump’s broader political goals.
“The ideas behind CHIPS and the Science Act began during the first Trump administration and maintain strong bipartisan support. Restoring U.S. semiconductor manufacturing leadership will help our nation compete economically. and national security,” an Intel spokesperson said in an email. “As the only American company to design and manufacture cutting-edge chips, Intel has a vital role to play, and we look forward to working with the Trump Administration on this shared priority.”
TSMC and Intel have both said their first manufacturing facilities should be operational within the first six months of 2025.
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