The Trump administration is reevaluating semiconductor grants issued under former President Joe Biden, aiming to secure better returns for American taxpayers. U.S. Commerce Secretary Howard Lutnick revealed during a Senate Appropriations Committee hearing that several Biden-era CHIPS Act awards are being renegotiated, with some potentially canceled.
Lutnick said some of the original grants were “overly generous” and have since been revised to deliver "more bang for the buck." He emphasized that only deals with clear public value would proceed, while flawed agreements would be scrapped. The CHIPS and Science Act, signed by Biden in 2022, allocated $52.7 billion to bolster U.S. chip manufacturing and reduce dependency on Asia.
Grants have been awarded to global semiconductor giants like Taiwan's TSMC, South Korea's Samsung and SK Hynix, and U.S.-based Intel and Micron. Although the funding was approved during Biden's term, most disbursements had not occurred before he left office. Companies are expected to receive funds as they meet progress milestones tied to U.S. factory expansions.
One notable revision includes Taiwan Semiconductor Manufacturing Co. (TSMC), which initially pledged $65 billion for U.S. investments. Lutnick confirmed the administration kept the $6 billion grant unchanged while securing an additional $100 billion investment commitment from TSMC. The company, however, declined to comment on whether this increase was tied directly to the renegotiation.
The administration is also pushing to retain over 50% of global AI computing power in the U.S., amid concerns about recent AI chip export deals, including one with the UAE. These efforts align with Washington’s broader goal of strengthening domestic technology leadership and national security in semiconductors and artificial intelligence.