Trump calls for an end to the Chips Act, redirecting funds to national debt

[midian182]

Why it matters: Donald Trump wants to kill off the Chips Act, the 2022 bipartisan law that is handing out $52.7 billion in subsidies to help bring semiconductor manufacturing back to the US. The President wants to use the money to pay the national debt instead.

In his first address to the joint session of Congress since he returned as President, Trump blasted the Chips Act.

"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 said.

"You should get rid of the Chips Act and whatever is left over, Mr. Speaker, you should use it to reduce debt."

According to the Treasury Department, the US federal debt is over $36.2 trillion, 123% of the country's 2024 national income.

Trump suggested that manufacturing companies would be incentivized to build facilities in the US to avoid the new tariffs he has introduced. "We don't have to give them money," Trump said.

Yesterday, chip giant TSMC announced that it was increasing its investment in US chip manufacturing by an extra $100 billion, bringing the total to $165 billion. Commerce Secretary Howard Lutnick said Trump's tariffs have made the US a more attractive proposition when overseas firms are looking for locations to build manufacturing facilities.

TSMC's $6.6 billion grant awarded under the US Chips Act was finalized last November. Lutnick said the government was not planning on giving TSMC any new subsidies, despite it being eligible for a 25% manufacturing investment tax credit. The company said last month that it has already received $1.5 billion of the award.

So far, the Chips act has announced approximately $32.5 billion in grant awards and up to $5.5 billion in loans to 32 companies across 48 projects in 23 states. In addition to TSMC, the biggest beneficiaries have been Intel ($8.5 billion), Samsung ($6.4 billion), Micron ($6.1 billion), and GlobalFoundries ($1.5 billion).

Some in government have expressed concerns about Trump's plans, including New York Governor Kathy Hochul, who said the Chips act "is the reason Micron is bringing $100 billion and 50,000 jobs to Central New York. Trump just said he wants to get rid of it."

Representative Greg Stanton said Trump's words were a "direct attack on Arizona's semiconductor industry and tens of thousands of Arizona workers."

Reuters reported this week that approximately one-third of staff in the US Commerce Department office overseeing the allocation of Chips act money were laid off.

The Chips (Creating Helpful Incentives to Produce Semiconductors) and Science Act was enacted in August 2022 with the aim of boosting domestic semiconductor manufacturing, research, and development. It was a response to the global chip crisis that hit during the pandemic, as well as China's persistent threat to Taiwan, which produces about 90% of the world's most advanced semiconductors

The $52.7 billion the act is funding to support the semiconductor industry comes in the form of $39 billion in manufacturing incentives, including grants and loans, and $13.2 billion for research and development.

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Trump calls for an end to the Chips Act, redirecting funds to national debt

 

[Mister_K]

I am glad Trump is in power. Why? It's a great experiment on what to do and what not to do and how it will affect the future generations.

 

[Kirby1]

So he's going to make it more expensive to buy chips made outside of the US with tariffs while also cutting off funding for US chip fabs.

This is all part of the secret master plan to make America great again; it just seems really stupid to throw of the libs!

 

[Puiu]

The extra "100 bil" is just BS lip service that trump wants in the news. Like with previous "promises", once trump goes away nothing will be invested. Even the current TSMC plans in the US have been pushed back to 2027, forget about doing anything new.

 

[KingKappa]

These companies are better off building their factories elsewhere if they care about their earnings/markup.

 

[kiwigraeme]

These companies are better off building their factories elsewhere if they care about their earnings/markup.

TSMC started building a more simple Chip factory in Dresden last year ( automotive chips )
Thing wants to start a fab doing AI chips , but plans others in Europe. So ultimately like car manufacturers they make near markets

Flip side of people like Trump - means you need to have factories elsewhere eg Nvidia , AMD , Apple can not ship from USA to be hit with 25% for big tarrifs

Also a lot of USA exports are IP related - not sure if rest of world cares to protect it
Also earns a lot from tourism and business travel etc - I'm sure that will go nicely as well

 

[YouShallNotPass]

These companies are better off building their factories elsewhere if they care about their earnings/markup.

I don't think TSMC have a choice as Taiwan need military support from the US. That's why Donald can be this bold to TSMC.

 

[Beerfloat]

So he's going to make it more expensive to buy chips made outside of the US with tariffs while also cutting off funding for US chip fabs.

This is all part of the secret master plan to make America great again; it just seems really stupid to throw of the libs!

It's quite transparent really if you listen closely.

He needs to cut costs to be able to bring the effective tax rate on his oligarch billionaire buddies down even further. They didn't buy him for nothing.

Of course, plundering the government balance sheet directly led to his push for a debt ceiling increase of 4 trillion dollars.

His voters can carry the burden of the price increases caused by tariffs. And we'll take away their Medicaid and food stamps. What're they gonna do? They're just losers anyway.

 

[toooooot]

That would be like taking the word back. Not his own, but the word of the nation.
That is bad business practice.

 

[bviktor]

He's the epitome of bull in a China shop.

 

[WhiteLeaff]

Intel's so ****ed up this time

 

[Dimitriid]

I just don't think it's possible to explain to someone so dumb why moving chip foundries is so complex that it might look like they're doing nothing simply because it will be close to a decade before they're even just kinda done moving some of the volume out of Taiwan.

You know, kind of like nobody has been able to explain to him why a trade deficit is not a bad thing if you actually look at the end goods you're importing vs what you're exporting: He only sees 'Negative number? Not in 'Merica Mother*!*@#S' no matter how much anyone tries to explain with apples and oranges why even though you spend more than other countries you're still overwhelmingly more wealthy than them already.

 

[opckieran]

Why do Dems want to pay large corporations billions of taxpayer dollars in advance? Definitely at odds with the party that constantly complains about big corporations and wealth inequality. Hmmm…

I’d rather just have someone who gives those corps the confidence to invest their own money upfront. Because they clearly have enough money; they certainly don’t need any more stimulus from the taxpayer!

 

[m3tavision]

It's quite transparent really if you listen closely.

He needs to cut costs to be able to bring the effective tax rate on his oligarch billionaire buddies down even further. They didn't buy him for nothing.

Of course, plundering the government balance sheet directly led to his push for a debt ceiling increase of 4 trillion dollars.

His voters can carry the burden of the price increases caused by tariffs. And we'll take away their Medicaid and food stamps. What're they gonna do? They're just losers anyway.

Except Trump is unburdening the US Citizen from all the Bureaucracy.

79% approval rating as President Trump re-upped his tax cuts from 2016 which was thee largest tax cut for low-income and middle class in 25 years. Biden threaten to remove Trump's 2016 tax plan... but couldn't, because it would have hurt the middle-class the most... not billionaires, like you like to believe.

You were told a lie.




I really feel sorry for non-Americans who do not have open media and are being controlled like Europeans (EU), who are not being told the truth... or who aren't allowed to talk about how their Countries are being invaded.. or allowed to talk about the truth or go to jail, etc.

Sad that you think Trump is any type of villain, when he is a savior. Only people mad about trump are pedophiles and people whom grift off the USA. Everyone else is on board with Trump.

Here is the sentiment across America, for people who saw past the media lies.. now seeing the swamp drained in real time:

https://twitter.com/x/status/1896912688321835041

 

[Lowhangingfruit]

"You should get rid of the Chips Act and whatever is left over, Mr. Speaker, you should use it to reduce debt."

To be very clear: Trump doesn't have the power to do this. He's asking congress to do it, but it's highly unlikely that will happen since this is a very good program for the US. This is all just words.

 

[dirtyferret]

You know, kind of like nobody has been able to explain to him why a trade deficit is not a bad thing if you actually look at the end goods you're importing vs what you're exporting:

I have a trade deficit with my local chinese take out. I keep buying their food but they buy nothing from me! Finally I got so pissed off I decided to raise tariffs on all their take out food that I import. So they just raised their prices by 10% to just me and I was like WTF? My trump u book of economics stated they would pick up the cost!

 

[Lowhangingfruit]

I have a trade deficit with my local chinese take out. I keep buying their food but they buy nothing from me! Finally I got so pissed off I decided to raise tariffs on all their take out food that I import. So they just raised their prices by 10% to just me and I was like WTF? My trump u book of economics stated they would pick up the cost!

Gold !

You should pressure them to move their facilities to your house.

 

[wiyosaya]

It's quite transparent really if you listen closely.

He needs to cut costs to be able to bring the effective tax rate on his oligarch billionaire buddies down even further. They didn't buy him for nothing.

Of course, plundering the government balance sheet directly led to his push for a debt ceiling increase of 4 trillion dollars.

His voters can carry the burden of the price increases caused by tariffs. And we'll take away their Medicaid and food stamps. What're they gonna do? They're just losers anyway.

I wonder why anything was never heard about Trusk's visit to Fort Knox? Dummies probably found all the gold there and could not use their visit to further their cause. I'm honestly surprised that they did not lie about it.

So, since they did not find any crap there, they are filling the swamp again because they need an excuse to Make America Trash or Make America a Sh!thole Third World Country.

I am glad Trump is in power. Why? It's a great experiment on what to do and what not to do and how it will affect the future generations.

It's interesting that Trusk are living in the distant past, but then again, to paraphrase Joe Walsh, you can't argue with sick minds.

Translation: This is Trusk saying what they really think - Manufacturing in America, and doing Putin's work for him. The US Treasury is there for Trusk to plunder.

 

[wiyosaya]

Except Trump is unburdening the US Citizen from all the Bureaucracy.

Right! By cutting the people from the IRS that go after Tax Cheats - as only one example. Got it.

79% approval rating as President Trump re-upped his tax cuts from 2016 which was thee largest tax cut for low-income and middle class in 25 years. Biden threaten to remove Trump's 2016 tax plan... but couldn't, because it would have hurt the middle-class the most... not billionaires, like you like to believe.

You were told a lie.

Lies are nothing new from Trusk.

 

[wiyosaya]

"You should get rid of the Chips Act and whatever is left over, Mr. Speaker, you should use it to reduce debt."

To be very clear: Trump doesn't have the power to do this. He's asking congress to do it, but it's highly unlikely that will happen since this is a very good program for the US. This is all just words.

Words are all he has. Its unfortunate that so many actually believe all his words since he is incapable of telling the truth.

 

[wiyosaya]

Here is the sentiment across America, for people who saw past the media lies.. now seeing the swamp drained in real time:

https://twitter.com/x/status/1896912688321835041

When the fallout hits, their opinions will change, and they will rue the day that Trusk was elected for a second term.

 

[wiyosaya]

The extra "100 bil" is just BS lip service that trump wants in the news. Like with previous "promises", once trump goes away nothing will be invested. Even the current TSMC plans in the US have been pushed back to 2027, forget about doing anything new.

Lip service like 140-year old social security recipients. Only a dolt would believe that. They believe that only because they have no understanding of the issue that makes it look that way.

"What you don't know, you invent!" Delenn - Babylon 5 "Deconstruction of Falling Stars."

Perhaps the better Babylon 5 quote is "When you become fanatical about the enemy, you become the enemy." Commander Sinclair - Babylon 5 "Infection".

 

[wiyosaya]

Guess who had the last balanced US budget. Clinton. YES. A DEMOCRAT. Then W came along and rang up national debt to astronomical values again!

Getting rid of the Chips act is a drop in the bucket for the national debt. It won't do to reduce the national debt.

 

[ScottSoapbox]

The Chips act takes taxpayer money and rewards the most politically connected companies regardless of how their products are desired by consumers (e.g., Intel's CPUs).

The market rewards firms that sell products that consumers want with more money to invest in R&D, new plants, or whatever to keep creating more products people want.

End ALL the corporate welfare (subsidies) and we'll have better products and less national debt.

 

[dirtyferret]

Right! By cutting the people from the IRS that go after Tax Cheats - as only one example. Got it.

it's mind numbing how gullible his cultist are but this is one that takes the cake (so many of them)
they want to close the tax loop holes (one that the conman himself uses) by getting rid of IRS agents. It's literally the equivalent of saying we want to stop forest fires by cutting the workforce in the US forest service

common sense didn't go out the door on that, it was never in the house to begin with