President Donald Trump’s administration is reworking several semiconductor grants issued under former President Joe Biden, with U.S. Commerce Secretary Howard Lutnick telling lawmakers on Wednesday that some awards may be canceled altogether.
Speaking before the Senate Appropriations Committee, Lutnick said that certain Biden-era semiconductor subsidies “appeared overly generous,” and the administration has successfully renegotiated some of them to better serve U.S. taxpayers.
“All the deals are improving, and the only ones falling through are those that never should have been approved to begin with,” Lutnick noted, implying that not all original awards will be preserved.
The grants in question stem from the CHIPS and Science Act, signed by Biden in 2022, which allocated $52.7 billion to enhance domestic semiconductor manufacturing and R&D, while reducing U.S. dependence on Asian chip production.
Major chipmakers—including TSMC, Samsung, SK Hynix, Intel, and Micron—were among the intended beneficiaries. Although many grants were approved during Biden’s tenure, actual disbursement began only shortly before he left office. The funding is expected to be released incrementally, based on companies’ progress in building or expanding U.S. production facilities. Full details of the agreements remain undisclosed.
Getting More for the Money
Lutnick highlighted TSMC as a case in which renegotiation produced stronger returns. Originally awarded $6 billion, the Taiwanese chip giant has now committed to $100 billion in U.S. investment—up from an initial $65 billion.
“We were able to keep the $6 billion funding in place while securing a much larger private-sector investment,” Lutnick said.
TSMC had previously announced the $100 billion investment in March, but it’s unclear whether that increase was directly tied to a renegotiated Chips Act deal. The company declined to comment.
A February Reuters report indicated the White House was already reviewing these semiconductor grants and hinted at possible delays in disbursement.
Lutnick also addressed concerns over American dominance in artificial intelligence computing. Responding to questions about the Trump administration’s recent decision to allow the United Arab Emirates to purchase advanced U.S.-made AI chips, he reaffirmed the administration’s support for ensuring over 50% of global AI computing capacity remains within the U.S.
