White House Reconsiders CHIPS Act Awards Amidst Policy Shifts

The White House is evaluating CHIPS and Science Act awards, signaling potential delays and renegotiations. This comes as the Biden administration reassesses terms set under former President Trump, particularly concerning union labor and childcare. Major semiconductor firms, who are significant fund recipients, face scrutiny over overseas expansions.

The White House is re-evaluating the CHIPS and Science Act awards, potentially delaying and renegotiating some upcoming semiconductor disbursements, according to sources who spoke to Reuters. This move stems from the Biden administration's desire to review and possibly adjust the terms set under the previous administration.

The renegotiation efforts target various conditions, including requirements for companies to use unionized labor and offer affordable childcare. These terms, initially imposed under President Joe Biden, have become points of contention as the current administration seeks to align funding with its policy goals.

Despite the lack of official communication from the White House and Department of Commerce, major semiconductor companies like Intel and TSMC stand at a crossroads. They face scrutiny from both the government and industry groups as they seek to navigate potential changes while maintaining their expansion efforts, including notable investments in China.

(With inputs from agencies.)