TSMC and Intel Investments at Risk as Trump Targets $52B CHIPS Act

President Donald Trump has reignited controversy over the CHIPS Act, calling for its termination in favor of higher tariffs on foreign semiconductor imports. This proposal has sent shockwaves through the industry, with companies like Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) and Intel Corp. (NYSE: INTC) facing potential disruptions to their expansion plans.

The $52 billion CHIPS Act, introduced under the Biden administration, has already attracted over $400 billion in private investments to boost domestic semiconductor manufacturing. Trump, however, criticized the program as a waste of taxpayer money, arguing that tariffs would be a more effective way to promote U.S. chip production while also generating revenue for the government.

CHIPS Act Under Review – Industry Braces for Changes

Trump’s administration has launched a review of existing contracts, creating uncertainty among chipmakers receiving federal subsidies.

📌 TSMC has expressed concerns about potential modifications to its agreements, which could impact its ongoing Arizona expansion project.
📌 Commerce Secretary Howard Lutnick indicated that newly announced projects may no longer qualify for federal funding, further clouding investment stability in the sector.

With semiconductor supply chains still recovering from global shortages and geopolitical tensions, analysts warn that scrapping the CHIPS Act could weaken U.S. competitiveness in advanced chip manufacturing.

The uncertainty surrounding Trump’s CHIPS Act review has triggered volatility in semiconductor stocks.

What’s Next for U.S. Semiconductor Policy?

While Trump’s proposal to scrap the CHIPS Act faces strong opposition from industry leaders and lawmakers, the administration’s ongoing contract reviews could still disrupt investments and impact chip production timelines.

Analysts suggest that investors should brace for short-term volatility, especially in CHIPS Act-backed companies like Intel, TSMC, and Micron Technology (NASDAQ: MU).

With global semiconductor demand rising, any policy shifts could have far-reaching consequences for U.S. chip independence and the broader tech sector.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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