U.S. Commerce Secretary Howard Lutnick stated that the Trump administration is renegotiating some of the subsidies provided to semiconductor companies during the Biden administration, suggesting that some subsidies may be canceled or reduced.
Lutnick pointed out that Taiwan Semiconductor is an example of successful renegotiation, having increased its initial commitment to invest $65 billion in U.S. manufacturing by an additional $100 billion.
On June 5, financial news reported (Editor: Liu Rui) that on Wednesday Eastern Time, U.S. Secretary of Commerce Howard Lutnick stated at a congressional hearing that the Trump administration is renegotiating some of the subsidies provided to semiconductor companies during former President Biden's administration, suggesting that some subsidies could be canceled or reduced.
Former U.S. President Biden signed the CHIPS and Science Act in 2022, announcing an investment of $52.7 billion to promote semiconductor chip manufacturing and research in the U.S., aiming to attract chip manufacturers away from Asia. This plan claims to include$Taiwan Semiconductor (TSM.US)$Samsung in South Korea and SK Hynix, as well as companies in the U.S.$Intel (INTC.US)$and$Micron Technology (MU.US)$Semiconductor giants have provided billions of dollars in funding.
However, although this bill was signed long ago, the funds only began to be distributed as Biden approached the end of his term.
Earlier this year, reports indicated that the White House was seeking to renegotiate these subsidy agreements and hinted at delaying payments for some chip subsidies that were originally about to be allocated. Previously, Trump had also called for the repeal of the CHIPS Act during a speech in Congress, labeling it as "bad business."
On Wednesday, Lutnick told members of the Senate Appropriations Committee that some of the appropriations during the Biden administration "seem overly generous; we have been able to renegotiate," adding that the goal of the Trump administration's move is to benefit U.S. taxpayers.
"All agreements are getting better, and the few that have not been reached are those that should not have been reached from the start," Lutnick stated, which seemingly suggests that not all subsidy agreements will survive the renegotiation.
Lutnick pointed out that Taiwan Semiconductor is a success story in renegotiation. He stated that Taiwan Semiconductor has increased its initial commitment to invest 65 billion dollars in U.S. manufacturing by an additional 100 billion dollars.
In March of this year, Taiwan Semiconductor announced an additional investment of 100 billion dollars, but it is currently unclear whether this is part of the renegotiation of the CHIPS Act.
Editor/Jeffy
