Time is running out. The Biden administration is in a mad rush to finalize billions in CHIPS Act deals before Trump takes office. With $39 billion in funding at stake, there is no room for delay.
The CHIPS Act, signed into law in 2022, was supposed to bring chip production home. The goal? Secure supply chains and reduce dependence on Taiwan for advanced semiconductors. It’s a big problem for American manufacturing. But there’s a catch. Although 90% of the money has been allocated, most of it is not yet locked. Only two deals, worth $6.6 billion, have been fully completed, according to the Commerce Department.
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Commerce Secretary Gina Raimondo pledged to allocate every dollar by the end of the year. But progress? It’s been slow. And patience is running out. “We are disappointed with how long and how slow the funding delivery has been,” said Intel CEO Pat Gelsinger, as reported by Bloomberg. He’s frustrated. The process has dragged on for more than two years.
President Joe Biden’s team is trying to speed things up. Last week they announced a $6.6 billion deal with Taiwan’s TSMC. At least $1 billion should be rolled out before the end of the year. But a lot still needs to be arranged. Intel, the largest potential recipient, is still negotiating terms to unlock its stake.
Newly elected President Donald Trump, meanwhile, is not a fan of the CHIPS Act. He’s been vocal. He thinks tariffs are a better way to get companies to make chips here. On a podcast with Joe Rogan, he called tariffs the smarter move. His team may step up a gear when he takes office. But the thing is, once a CHIPS Act deal is done, it’s hard to undo. They are legally binding unless companies do not adhere to the agreement.
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Analysts like Jeff Koch say Trump could slow things down even if he doesn’t repeal the CHIPS Act. “This had the added benefit of pushing the Biden administration to cut red tape and disburse CHIPS Act funds while still in office,” Koch told Business Insider.
