• Former President Donald Trump urges repeal of the CHIPS Act, calling it a "horrible, horrible thing."
  • The $52.7 billion semiconductor subsidy law has spurred over $540 billion in private investments and 500,000 projected jobs.
  • Industry experts question the feasibility of Trump's tariff-based alternative to subsidies.

Trump's Scathing Critique

In a fiery joint address to Congress on March 4, 2025, former President Donald Trump launched an unexpected broadside against the CHIPS and Science Act, demanding its repeal and calling the landmark legislation a "disaster." He specifically urged House Speaker Mike Johnson to repurpose any remaining funds toward debt reduction, according to sources familiar with the remarks.

The Act's Bipartisan Legacy

The 2022 legislation—passed with 17 Republican senators' support—has become a cornerstone of U.S. industrial policy, with the Biden administration disbursing $32.5 billion in grants and $5.85 billion in loans across 48 projects in 23 states. Semiconductor sales were projected to hit $697 billion this year, partially fueled by CHIPS Act incentives that triggered what Commerce Department officials called "the most concentrated wave of private manufacturing investments in modern history."

Jobs Versus Debt Debate

Trump's remarks ignited immediate pushback from lawmakers in both parties, particularly from states like Ohio and Arizona where new chip fabs are under construction. "When you're talking about 68,000 high-tech jobs and another 122,000 construction roles, this isn't just about subsidies—it's about winning the geoeconomic race," said one Republican staffer involved in the original legislation, speaking on condition of anonymity.

The Tariff Alternative

Sources close to the former president suggest he favors replacing subsidies with aggressive tariffs on foreign semiconductors, though analysts question whether this approach could backfire. "Supply chains don't reconfigure overnight," noted a strategist at a top-five semiconductor equipment firm. "Our industry plans in 10-year cycles—you can't tariff your way to resilience without massive price spikes."

[Updates: This article has been revised to clarify the projected 2025 semiconductor sales figure.]