Chipmakers Await Changes to the US Chips Act

Taiwan-based chipmaker GlobalWafers said that the new administration is reviewing its funding under the US Chips and Science Act. However, Washington still hasn't notified the company of any changes.

The Chips Act program officer said certain conditions in the act aren’t aligned with President Donald Trump’s policies and are under review. Under the contract approved by former US President Joe Biden, GlobalWafers is set to receive $406 million in government funding for projects in Texas and Missouri. The funds will only be awarded to the company after it meets specific milestones this year.

The Trump administration reportedly raised flags about conditions requiring companies receiving government funds to use unionized labor for construction and provide childcare for workers. Other global chipmakers including Intel, TSMC, Samsung, and SK Hynix did not comment on the report. Any modifications in the funding stipulated in contracts for South Korea’s chipmakers would deal a heavy blow to their advanced semiconductor production facilities currently under construction in the US.

Samsung plans to invest more than $40 billion to expand its semiconductor manufacturing capabilities in the state of Texas, with government support of $4.6 billion, while SK Hynix scored $950 million in subsidies and loans for an AI chip facility. That adds to its planned investment of $3.8 billion in Indiana.