Donald Trump's sudden decision last week to attack the bipartisan CHIPS and Science Act after he previously offered assurances that he wouldn't has sent shockwaves across the industry and has even given some Republicans whiplash.
Soon after Trump told Congress that the CHIPS Act is a "horrible, horrible thing," chip company executives rushed to consult their lawyers to see if Trump could possibly claw back funding or terminate their contracts, eight people familiar with the executives' moves told The New York Times. At least one expert told Ars that their fear isn't completely unfounded.
Signed into law by Joe Biden in 2022, the CHIPS Act sought to grant $52.7 billion in subsidies to bring the most advanced chipmakers into the US. The Commerce Department has already signed contracts granting a wide range of awards, including grants for chipmakers like Intel, Micron, Samsung, and the Taiwan Semiconductor Manufacturing Co. (TSMC), totaling more than $36 billion in federal subsidies.
