President Donald Trump invites Congress to get rid of the chips law. The Biden Administration Signing legislation aims to enhance the production and research of semiconductor in the United States and wakes up the country for its dependence on the chips that were made abroad.
During his speech in front of a joint session of Congress on Tuesday, Trump launched the chips as “a terrible and terrible thing”, and claimed that companies that received financing do not spend money.
The Law of the Parties, which was signed in the law in 2022, allocated $ 52.7 billion to finance the construction of the manufacturing and semiconductor research facilities throughout the United States. According to the National Institute for Standards and Technology, the United States represents only 10 % of the production of chips in the world.
The largest part of the chips used in devices ranging from smartphones to laptops to cars, communications and military equipment abroad is manufactured. This two-sided equation was starkly entertaining during the Covid-19s, when the chips in other countries were forced to close, causing a huge deficiency that limits or slows down the sale of a wide range of products for several months.
The chips law was supposed to restore manufacturing to the United States with incentives, including grants and loans. So far, the Ministry of Trade has announced more than $ 36 billion in proposed and allocated financing.
Intel (INTC), the largest chips manufacturer in the United States, has received the largest compensation through the Chips Law, a $ 7.9 billion grant that will help the company to establish new factories throughout the country. She also received Samsung, SK Hynix, Globalfoundries (GFS) and Texas Instruments (TXN), and a large number of other companies financing the chips law.
During his speech, Trump recently distributed the TSMC (TSM) plan on a $ 165 billion spending plan on factories at the Arizona Flicet Manufacturing facility. Trump claimed that TSMC is building facilities without any money from the United States.
But TSMC will actually receive $ 6.6 billion through the chips law, which will support the previously announced construction plans of $ 65 billion in Arizona. On Monday, the company said it would put an additional $ 100 billion in facilities, amounting to the total price of the project to $ 165 billion.
Trump has previously played the idea of killing the chips law and imposing definitions on the semiconductors that were built abroad as a way to force companies to re -manufacture to the United States. But the closure of the legislation will also put Intel plans to build its manufacturing imprint at a danger at a time when the company tries to create a third -party mastee that would build chips for customers similar to TSMC.
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