President Donald Trump delivered his sharpest rebuke yet of the 2022 CHIPS and Science Act in his joint address to Congress, telling lawmakers to “get rid” of the law.
Sarah Kreps, professor of government and law, is director of the Tech Policy Institute at Cornell University. She will lead a new U.S. Semiconductor Research Hub, which will work to assess and improve the resilience of the global interconnected network of semiconductor infrastructure.
Kreps says: “CHIPS funding will be difficult to cut given its bipartisan support and national security implications. Passed in 2022, the legislation was designed to bolster U.S. semiconductor manufacturing, making the country less reliant on foreign supply chains. Cutting it requires congressional action, either through rescinding funds or refusing to appropriate more.
“However, many Republican lawmakers – some of whom were the original sponsors – represent states that benefit from CHIPS subsidies, making full repeal politically challenging. If deficit reduction becomes a priority, CHIPS funding could be targeted for cuts, particularly as foreign manufacturers like TSMC invest without subsidies (e.g., its $100B Arizona expansion).
“While a full repeal is unlikely, gradual reductions in funding remain possible, forcing GOP lawmakers to balance fiscal conservatism against economic benefits for their own states.”
For interviews contact Becka Bowyer, cell (607) 220-4185, rpb224@cornell.edu.
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