May 29, 2025 10:19 pm
Full News

Trump’s Return Clouds Future of US Chip Initiative, Taiwan Braces for Impact

Taipei, Taiwan – The looming inauguration of President-elect Donald Trump has cast uncertainty over the CHIPS and Science Act, a cornerstone initiative of outgoing President Joe Biden to revitalize semiconductor manufacturing in the United States.
The CHIPS Act, signed into law in 2022, allocated $280 billion to boost domestic semiconductor research and production, including $39 billion in subsidies, loans, and tax credits for US and foreign firms. The legislation garnered bipartisan support, drawing optimism from states eager to attract advanced manufacturing and create jobs.
As Trump prepares to assume office on January 20, the Biden administration is racing to finalize deals with chipmakers and distribute funds under the act. Trump’s recent criticism of the legislation, branding it “so bad” during a podcast appearance, has added to the uncertainty.
“We put up billions of dollars for rich companies,” Trump said, expressing disdain for the subsidies. He has also accused Taiwan, home to the world’s leading semiconductor producer, Taiwan Semiconductor Manufacturing Company (TSMC), of “stealing” the chip industry from the US.
Uncertainty Looms Over Funding Distribution
The CHIPS Act’s funding has already started to flow, with US firms like Intel receiving $7.9 billion in direct support. Asian partners, including TSMC and South Korea’s Samsung and SK Hynix, have also signed agreements. TSMC secured $6.6 billion in grants and $5 billion in loans to construct four facilities in Arizona.
While Trump cannot unilaterally repeal the CHIPS Act, analysts suggest he could delay its implementation. By obstructing fund distribution or renegotiating terms, Trump might seek to reshape the initiative under his administration’s branding, as he did with the US-Mexico-Canada Agreement, which replaced NAFTA.
“What [Trump] really wants is to get his brand on everything,” said Dan Hutcheson of Tech Insights.
Asian Stakeholders Assess Risks
TSMC has moved forward with its US investments, but others have been more cautious. Samsung signed a $45 billion deal in April to expand its Texas facilities, yet progress has stalled. SK Hynix’s plans to build a $3.87 billion facility in Indiana have similarly seen no updates.
Asian countries are also enhancing their domestic chip industries. Taiwan and South Korea have launched subsidy programs, while Japan pledged $65 billion to boost its semiconductor sector. China has earmarked $45 billion to strengthen its chip manufacturing amid US export restrictions.
Yachi Chiang, a professor at National Taiwan Ocean University, suggested that Trump’s administration might pressure TSMC to increase its $65 billion US investment. “Renegotiations could prolong fund distribution or even jeopardize agreements,” said Chim Lee, a senior analyst at the Economist Intelligence Unit.
Regional Politics Add Complexity
Political turmoil in East Asia adds another layer of unpredictability. Taiwan’s President William Lai Ching-te faces opposition control in the legislature, limiting policy flexibility. South Korea’s leadership is in flux, with caretaker Prime Minister Han Duck-soo holding office amid impeachment proceedings against the president. In Japan, Prime Minister Shigeru Ishiba’s minority government faces electoral uncertainty.
Despite these challenges, East Asian leaders remain focused on maintaining strong ties with the US. William Reinsch, an expert at the Center for Strategic and International Studies, highlighted the broader considerations for regional leaders.
“They’ll weigh investment in the US, higher defense budgets, and alignment with US policies on China, not just the CHIPS Act,” Reinsch said.
Taipei has signaled its willingness to engage with Trump’s administration. Shortly after his election, reports surfaced of Taiwan considering a $15 billion arms purchase to demonstrate its commitment to US relations.
As the Trump administration prepares to take the helm, the future of the CHIPS Act—and its impact on the global semiconductor industry—remains shrouded in uncertainty.

Related News
Catastrophic Flooding in Australia
Did Sheikh Hasina Really Burden the Nation with Debt?
Real Madrid celebrates goal in Minera’s net.
American Airlines Resumes Operations Following Technical Glitch
Elon Musk’s Cost-Cutting Team Sends Error-Ridden Termination Notices to USAID Staff
David Warner’s Career: Over Yet Not Over
Related Posts
MIT Shuts Down DEI Office Amid National Debate and Trump Administration Pressure
GOP Lawmaker Introduces Bill to Rename D.C. Metro as “Trump Train”
Kamala Harris’s 2028 Nomination Is Hers to Lose — and She’s Losing It
Trump Sees Major Wins in Latin America
SpaceX Starship Setbacks Raise Concerns Over NASA’s 2027 Moon Mission
Lashkar-e-Taiba Claims Role in Bangladesh Uprising, Raising Alarms Over Regional Security
More News

Biden’s National Security Advisor Makes Crucial Visit to India Amid Transition to Trump

In a significant diplomatic move, Jake Sullivan, the National Security Advisor to President Joe Biden, visited India on January 8, 2025, to fortify key aspects of the U.S.-India partnership before the anticipated transition to a new administration led by Donald Trump. The visit underscores the urgency to “foolproof” elements of this strategic alliance, particularly in […]

Washington on high alert ahead of Trump’s inauguration

A 30-mile temporary fence has been erected in Washington as a precaution ahead of Donald Trump’s inauguration. A 30-mile (48 kilometer) long and high temporary fence of black color has been installed. Some 25,000 law enforcement officers have been deployed. Security checkpoints have been set up for millions of spectators. Above all, Washington has made […]

Anti-Hamas Protests Intensify in Gaza, Group’s Control Weakening

Protests against Hamas, which has ruled the blockaded Gaza Strip for nearly two decades, are becoming increasingly intense. Residents across Gaza are now openly chanting slogans against the group. In a video circulating on Telegram, demonstrators can be heard shouting, “Hamas, get out!” In another clip, protesters label Hamas as “garbage.” Mawmen Al-Natour, a Gaza […]

Over 400 Killed in Israeli Airstrikes on Gaza in a Single Night

The number of casualties from Israeli airstrikes on Gaza last night has exceeded 400, with at least 660 others injured, according to the latest update from Gaza’s Health Ministry on Tuesday (March 18). The ministry confirmed that 413 people lost their lives in the attacks. Many civilians remain trapped under the rubble of collapsed buildings, […]

Over Fifty Migrants Missing as Boat Sinks in the North Atlantic

At least 50 migrants have gone missing after a boat carrying them sank in the North Atlantic Ocean. The group was traveling from Mauritania, an African nation, to Spain. This information was reported by the non-governmental organization (NGO) Walking Borders, which works with migrants. The boat reportedly began its journey on January 2, carrying around […]

Navigating the New Oil Order: India’s Response to US Sanctions on Russian Tankers

In a geopolitical chess game where energy is both the pawn and the prize, India has recently taken a significant step by deciding to reject oil tankers sanctioned by the United States for their role in shuttling Russian oil. This decision is not merely a point of policy but a reflection of the intricate dance […]

Bangladesh’s Descent into Anarchy under Yunus The World’s Silence Is Painful To the Conscience of Humanity

Harun Al Rashid Bangladesh writhes under the savagery unleashed by Nobel laureate Dr. Muhammad Yunus. Millions face an impossible choice: death, exile, or submission to radical extremism. On August 5, 2024, the nation experienced one of its darkest hours—a meticulously coordinated terrorist onslaught that shattered its foundations by overthrowing the legitimate government of Prime Minister […]

Māori Protest in Parliament Against Controversial Bill to Rewrite Treaty of Waitangi

On Thursday, New Zealand’s Parliament was temporarily suspended after Māori lawmakers staged a powerful protest against a bill that seeks to alter the interpretation of the Treaty of Waitangi, a key document in the country’s history. During the bill’s first reading, Te Pāti Māori lawmaker Hana-Rawhiti Maipi-Clarke stood up, ripped up her copy of the […]

Saira Banu Clears AR Rahman’s Link-Up Rumors with Mohini Dey

The Oscar-winning musician AR Rahman and Saira Banu have officially separated after being married for 29 years. Even though they asked for privacy during this difficult time, people started making up stories about their separation. Recently, Saira Banu talked about the rumors and shared a new statement. On November 24, Saira released an audio message […]

Khamenei: The US Could Not Have Stopped Iran from Developing Nuclear Weapons

Iran’s Supreme Leader, Ayatollah Ali Khamenei, has stated that if Iran wanted to develop nuclear weapons, the United States would not have been able to prevent it. He also dismissed the idea of engaging in nuclear talks with the US. According to Al Jazeera, Khamenei said that even if nuclear negotiations took place, US sanctions […]