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TAKEAWAYS KEY
- Howard Lutnick, Commerce Secretary, has reportedly said that he may not give out CHIPS Act awards to recipients who don’t significantly expand their U.S. project.
- Bloomberg reported that Lutnick wanted the companies that won awards to follow TSMC which has pledged $100 billion more to its investment plan.
- President Donald Trump has been a critic of the CHIPS Act and signed an executive order Monday to create an office aimed, the White House said, at "negotiating much better CHIPS Act deals than the previous Administration."
Howard Lutnick, Commerce Secretary, has reportedly said that he may not give out CHIPS Act awards to recipients who don’t significantly expand their semiconductor projects in America.
Bloomberg, citing eight sources familiar with the issue, reported that Lutnick wanted the companies who won the awards, to follow Taiwan Semiconductor Manufacturing Company, which has pledged to add $100 billion to the initial $65 billion plan for investment in U.S. factories.
Bloomberg reported that Lutnick was seeking to generate billions dollars in chip investments by companies, without increasing the award size.
The Department of Commerce didn't immediately respond to a request for comment.
President Donald Trump is a critic of CHIPS and Science Act. The legislation, which was backed by former-President Joe Biden in 2022, allocated more than $50 billion to boost domestic semiconductor production.
Trump signed a Monday executive order to create a United States Investment Accelerator at the Department of Commerce. This office will help facilitate and accelerate US investments over $1 billion. The program is responsible for the CHIPS Act program, aimed, it said, at "negotiating much better CHIPS Act deals than the previous Administration," the White House said in its fact sheet about the order.
