TAIPEI (Taiwan News) — US President Donald Trump told Congress on Tuesday to get rid of the CHIPS Act, an NT$1.7 trillion (US$52.7 billion) subsidy program for chipmakers like TSMC to manufacture in the US. 

In a speech to Congress, Trump told lawmakers, "You should get rid of the CHIPS Act and whatever is left over, Mr. Speaker, you should use it to reduce debt." He suggested that tariffs would be enough to force chipmakers to set up factories in the US, per Reuters. 

Trump also referenced TSMC’s plans announced Monday to invest NT$3.29 trillion and build five more facilities in the US. He said TSMC will avoid the tariffs through their investment.  

The CHIPS and Science Act in 2022 was a landmark, bipartisan deal intended to boost US chipmaking by allocating grants for chipmakers to produce on US soil. More than 20 companies signed contracts with the US, with TSMC being one of the largest recipients.

TSMC said last month that the company received US$1.5 billion of its US$6.6 billion award. 

US Commerce Secretary Howard Lutnick had previously commended the program but said he would review contracts finalized under the Biden administration. On Monday, Lutnick said the US was not planning to give new subsidies to TSMC, but it is eligible for a 25% manufacturing investment tax credit. 

Through the CHIPS Act, the Biden administration sought to lessen national security risks from imported chips by convincing companies to open factories in the US. The program was also meant to bring billions of dollars and thousands of jobs to the US. 

For example, New York Governor Kathy Hochul said the CHIPS Act is bringing “US$100 billion and 50,000 jobs to Central New York.” “Trump just said he wants to get rid of it,” she added. 

In addition, Arizona Congressman Greg Stanton said TSMC's investment in Arizona would not be possible without the CHIPS Act. He said Trump represented a “direct attack on Arizona's semiconductor industry and tens of thousands of Arizona workers.”