Former President Donald Trump called for the repeal of the 2022 CHIPS and Science Act, arguing that the $52.7 billion subsidy program for semiconductor manufacturing should be scrapped, with the funds redirected toward reducing the national debt.

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Speaking at a recent event, Trump attacked the subsidy program, saying businesses take the money but neglect to make good use of it. He suggested a different strategy, implying that rather than direct subsidies, tariffs could be used to encourage chip manufacture within the United States.

To boost U.S. semiconductor output, the Biden administration has allocated more than $33 billion in subsidies to chip makers under the Commerce Department. Among the firms that received money are Samsung with $4.75 billion, Intel (INTC, Financials) with up to $7.86 billion, Taiwan Semiconductor Manufacturing Co. (TSM, Financials) with $6.6 billion, and Micron (MU, Financials) with $6.1 billion. To further assist semiconductor companies, the law also approved $75 billion in government lending capability.

Officials citing the CHIPS Act's economic benefits have objected to Trump's plan to revoke the program. Governor Kathy Hochul of New York cautioned that the initiative encouraged 50,000 employment and $100 billion investment in Central New York. Representative Greg Stanton of Arizona said that Taiwan Semiconductor's $100 billion investment in the state was dependent on CHIPS Act financing and labeled Trump's stance a clear assault on Arizona's semiconductor sector.

Semanticonductor companies keep growing in the United States despite political ambiguity. Aiming to establish five more semiconductor plants, Taiwan Semiconductor declared intentions for a fresh $100 billion investment. Although the Commerce Department verified the corporation has already received $1.5 billion of allotted subsidies, it said no further subsidies are scheduled.

The semiconductor program is under close examination meantime. The Trump administration is looking at all of the semiconductor projects Biden approved, according to a Reuters report. Furthermore, recently lay off nearly one-third of the employees in charge of supervising the $39 billion in subsidies under the CHIPS Act point to a possible change in priorities.

A reversal of CHIPS Act funding might greatly affect semiconductor investments and manufacturing capacity in the United States, therefore upsetting long-term industry plans.