Former President Trump has made his strongest denunciation of the CHIPS Act yet, insisting that it should be abolished entirely. He believes that the $52 billion allocated in subsidies for semiconductor production should be redirected to reduce debt instead of incentivizing the construction of chip manufacturing facilities in the U.S.

“Your CHIPS Act is a horrible, horrible thing. We give hundreds of billions of dollars and it doesn’t mean a thing. They take our money and they don’t spend it,” Trump stated during his address to Congress. “You should get rid of the CHIPS Act and whatever is left over, Mr. Speaker, you should use it to reduce debt.”

This act was designed to promote domestic tech production and was established by President Biden in 2022, garnering bipartisan support. It included $39 billion solely for semiconductor manufacturing to mitigate supply chain risks associated with foreign imports, promoting U.S. jobs as a secondary benefit.

Despite its intentions, Trump’s critique comes as the President has introduced new tariffs aimed at increasing U.S.-based production without offering financial aid to companies.

In response to Trump’s comments, New York Governor Kathy Hochul referred to the CHIPS Act as the catalyst for Micron’s $100 billion investment, asserting that Trump’s remarks undermine real job creation. Arizona’s representative Greg Stanton also cautioned that Trump’s comments could directly harm Arizona’s semiconductor industry.

In a rapidly evolving tech landscape, the situation remains complex as the U.S. seeks to maintain a competitive edge in semiconductor production.