Outgoing Commerce Secretary Reveals Trump’s Support for the CHIPS and Science Act: What It Means for Innovation and Technology

While Donald Trump and his supporters were critical of the Biden administration’s CHIPS and Science Act during the election campaign, it seems the incoming government won’t scrap it. Bloomberg reported that Howard Lutnick, Trump’s pick for Commerce Secretary, hinted at continuing the program.

Before the election, Trump called the CHIPS Act flawed and suggested tariffs instead. Yet, Lutnick has shown a different approach. In a meeting with the outgoing Secretary, Gina Raimondo, he expressed his dedication to the initiative, as shared by her in a staff meeting.

The CHIPS and Science Act, valued at $52 billion, was created to boost U.S. semiconductor manufacturing. As it transitions to Trump’s administration, it’s already generated $39 billion in grants and attracted over $450 billion from private investments. Major companies like Intel, GlobalFoundries, TSMC, and Samsung are establishing large facilities in the U.S. Despite some challenges, both Intel and Samsung remain committed to their investments in the country.

However, reactions within Trump’s team vary. Vivek Ramaswamy, co-leader of Trump’s Department of Government Efficiency, has been openly critical of the CHIPS initiative. He described the Biden administration’s last-minute grant allocations as “inappropriate” ahead of the transition. Ramaswamy plans to review these funding contracts and other initiatives, calling out what he sees as wasteful subsidies.

In the weeks following the election, significant funding contracts exceeding $16 billion were awarded to several semiconductor companies, including BAE Systems and TSMC. This was a rush to secure government funding under the CHIPS program, especially since before the election, only one major contract had been given.

Gina Raimondo defended the rapid funding timeline, stating it was part of the original strategy of the CHIPS and Science Act. She emphasized that the timeline wasn’t influenced by potential shifts in policy with the new administration.