White House Reviews CHIPS Act Awards Amid Policy Shifts

The White House is re-evaluating U.S. CHIPS and Science Act awards, potentially delaying semiconductor fund allocations. Sources indicate President Biden's administration is reviewing terms to reconcile with current policies, affecting agreements initially established under previous administrations, with potential impacts on major semiconductor companies.

The White House is taking steps to renegotiate the CHIPS and Science Act awards, causing delays in some semiconductor fund disbursements, sources informed Reuters. This move marks a significant shift in policy direction aimed at reassessing industry agreements made under the 2022 law to enhance domestic semiconductor production.

The review process, instigated by concerns over contract requirements added during President Joe Biden's administration, includes provisions mandating unionized labor and affordable childcare for workers. These changes are directed at ensuring compliance with current administration policies. Notably, the CHIPS Act has committed $39 billion to bolster the U.S. semiconductor sector.

In light of these potential alterations, companies like GlobalWafers, Intel, TSMC, and others with substantial funding are on alert, while some recipients with existing or announced plans for expansion in China face scrutiny. The administration's actions could reshape the semiconductor landscape, impacting both domestic and international operations of major industry players.

(With inputs from agencies.)