Trump Sets Up New Office To Manage CHIPS Act
The Trump administration is setting up a new office that will administer the CHIPS Act.
By Mark LaPedus
The Trump administration is setting up a new office that will take over and administer the CHIPS and Science Act.
On March 31, President Trump signed an executive order establishing a new entity called the United States Investment Accelerator. The order establishes an office within the U.S. Department of Commerce named the United States Investment Accelerator, meant to facilitate and accelerate investments above $1 billion in the United States.
“The Investment Accelerator will be responsible for administering the CHIPS Program Office, where it will deliver the benefit of the bargain for taxpayers, negotiating much better CHIPS Act deals than the previous Administration,” according to a statement from the White House. The U.S. CHIPS and Science Act is a program designed to boost chip production in the United States.
It's unclear how the U.S. Investment Accelerator will work. It’s also unclear if the Trump administration will preserve and support the original funding awards and programs from the existing CHIPS Act.
What is the CHIPS Act?
For years, the U.S. has been the leader in designing new chips in the market. But U.S.’s worldwide share of chip-manufacturing capacity has declined at an alarming rate over the years.
In response, under the Biden administration, the U.S. government in 2022 launched a new program called the CHIPS and Science Act. The CHIPS Act is supposed to jumpstart chip manufacturing in the U.S. The CHIPS Act set aside $39 billion in grants for manufacturing and $11 billion in funding for R&D and workforce development.
Intel, TSMC and a few others obtained grants from the CHIPS Act. Many others are on the waiting list. In addition, several companies obtained investment tax credits.
Then, not long ago, President Trump said he wanted to scrap the program. At the same time, the Trump administration threatened to impose tariffs on semiconductors that are imported in the U.S., including those from TSMC.
Hoping to avoid tariffs, TSMC appears to have found a solution. In March, TSMC announced its intention to expand its investment in advanced semiconductor manufacturing in the United States by an additional $100 billion. The expansion includes plans for three new fabs, two advanced packaging facilities and an R&D center. In total, TSMC is investing $165 billion in the U.S.
Nonetheless, the Trump administration appears to have reversed its position on the CHIPS Act. Now, the CHIPS Act is back, at least in a different form. The new U.S. Investment Accelerator will be responsible for administering the CHIPS Program Office.
It’s unclear if the Trump administration will move ahead with the original funding awards and programs from the existing CHIPS Act. There are signs that Trump administration is seeking to renegotiate CHIPS funding awards at various companies and R&D programs. The administration will likely want companies to make a bigger investment up front.
In return, the Trump administration claims it will cut through the red tape. “An Investment Accelerator is needed to cut through red tape and ensure that businesses can quickly deploy capital and create jobs without navigating a maze of bureaucratic hurdles,” according to the White House. “By streamlining processes, the Accelerator will attract both foreign and domestic investment, reinforcing America’s position as the premier destination for large-scale investment.”