Trump Replaces Biden’s Chips Act with New Entity

Donald Trump has signed an executive order establishing the United States Investment Accelerator within the Commerce Department, effectively taking over the Chips Act program initiated by the Biden administration. The move aims to expedite corporate investments, particularly in semiconductor manufacturing, within the U.S.

The Chips and Science Act, signed into law in August 2022, allocated $52.7 billion in subsidies to boost domestic semiconductor production. Trump has been a vocal critic of the bipartisan Chips Act, even suggesting that lawmakers should eliminate it and allocate the funds to debt reduction.

According to the White House, the newly formed office will be tasked with “negotiating much better Chips Act deals than the previous administration.” Specific details regarding these negotiations have not yet been released.

Beyond semiconductor investments, the Investment Accelerator will focus on encouraging broader corporate investments in the U.S. by streamlining regulations, accelerating permitting processes, fostering coordination between federal agencies and states, and improving access to national resources, according to a White House fact sheet.

This initiative signals a significant shift in approach to bolstering U.S. manufacturing and technological competitiveness. Time will tell how this new entity will reshape the landscape of semiconductor production and corporate investment in the United States.

Source: Reuters