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June 5, 2025 — Washington, D.C.
In a bold shift, the Trump administration is renegotiating key semiconductor grants issued under the Biden-era CHIPS and Science Act. The law aimed to boost U.S. chip manufacturing and reduce reliance on foreign supply chains. Trump officials now call the original terms “overly generous” and are reassessing them. They believe these deals did not sufficiently protect American taxpayers. The administration wants stronger commitments and better returns from companies receiving federal funding.
U.S. Commerce Secretary Howard Lutnick confirmed at a Senate session on Tuesday that his administration had begun to review chip grant agreements. In certain instances, the administration has changed agreements with major manufacturers. They include Taiwan Semiconductor Manufacturing Company (TSMC), Intel, Samsung, SK Hynix, and Micron.
“These grants were negotiated under circumstances that, frankly, did not prioritize American taxpayers,” Lutnick told senators. He emphasized that the administration will ensure these investments create not only jobs and technology but also deliver fair value for every dollar spent.
TSMC’s revamped $6.5 billion loan is one of the most notable examples. The result is that TSMC is increasing the size of its U.S. investment commitment from $100 billion to $65 billion. This is a move that Lutnick declared a victory in the direction of American manufacturing.
“TSMC and other companies have agreed to stronger terms because they recognize that the new administration is serious about accountability and results,” Lutnick said.
Trump Donald Trump, who was reintroduced into the White House in January, has been vocally scathing about the CHIPS Act. CHIPS Act, calling it a “horrible thing” during a recent speech addressed to Congress. Although the principal goal of restoring chips to manufacturing in the U.S. remains intact, Trump’s administration has taken proactive measures to ensure that funds are efficiently and quickly distributed.
Insiders suggest the administration will keep many grant agreements in revised forms. However, it may terminate others completely if they conflict with national interest or lack sufficient oversight.
Congress approved the CHIPS and Science Act into law in 2022. It allocated over $50 billion in funding to increase this U.S. chip industry. The Biden administration included it as a key element of its economic and national security strategy. As China and other global rivals have accelerated their chip production, the U.S. has pushed to strengthen its own manufacturing capacity.
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