TAIPEI (Taiwan News) — Donald Trump’s pick for US commerce secretary declined to fully support the CHIPS Act during his confirmation hearing on Wednesday.
If approved, Howard Lutnick will lead the US Commerce Department, which managed a US$52.7 billion (NT$1.7 trillion) subsidy program for domestic semiconductor production developed under the Biden administration. New leadership could affect grant disbursement to companies like TSMC, Bloomberg reported.
When asked about the CHIPS Act, Lutnick said, “I can’t say that I can honor something I haven’t read.” He added, “To the extent monies have been disbursed, I would commit to rigorously enforcing documents that have been signed by those companies to make sure we get the benefit of the bargain.”
The CHIPS Act was intended to boost US chipmaking by allocating grants for building semiconductor plants on US soil. More than 20 companies signed final contracts with the US, with TSMC being one of the largest recipients at US$6.6 billion.
Lutnick’s responses signaled the Trump administration would reshape the plan with its perspective, but stop short of canceling it altogether. Only US$4.3 billion has been distributed, and Trump officials may slow or limit the grant distribution, or remove certain provisions such as environmental or labor-friendly policies.
Bloomberg reported that some companies are worried the language in their contracts may give Trump officials room to make changes. TSMC was also promised government loans and investment tax credits in preliminary agreements, which Trump officials could alter.
Trump expressed disapproval of the CHIPS Act in October. On Monday, he announced plans to impose tariffs on Taiwan’s semiconductors, claiming a “25%, 50%, or even 100% tax” would force companies to produce in the US.
