SEOUL, November 21 (AJP) - The Biden administration is speeding up the disbursement of subsidies under the CHIPS Act to finish them within his term, with attention on the upcoming approval of subsidies for Samsung Electronics and SK Hynix, Korean conglomerates that committed to invest in the U.S.
Concerns that President-elect Donald Trump, who has criticized the CHIPS Act several times, may attempt to neutralize the law after his inauguration in January have prompted these expedited negotiations. Trump suggested in an October podcast interview that the U.S. could incentivize semiconductor production without offering subsidies, by imposing high tariffs on imported semiconductors and encouraging companies to build factories in the U.S. instead.
The Biden administration is working to distribute the allocated subsidies within the next two months, before Trump takes office in January. The U.S. Department of Commerce had already assigned most of the $39 billion in subsidies under the CHIPS Act. However, about $30 billion of that amount has not been disbursed as contracts have yet to be finalized.
GlobalFoundries and Taiwan's TSMC have already completed negotiations and are expected to receive their subsidies soon, while Samsung, Intel, and Micron are still finalizing contract details.
The Department of Commerce is reportedly working hard to ensure as many subsidies as possible are distributed before the change in administration. The goal is to complete contracts and disburse subsidies before Trump takes office, as there is concern he may block the funding.
Earlier in November, companies from Ohio, New Mexico, New York, and Oregon sent a letter to the Biden administration expressing concerns that subsidies were not being distributed on time and requested that the funds be made available within the next 30 days.
Commerce Secretary Gina Raimondo said an interview that she hoped to spend all the research and development funds before the end of the administration. She acknowledged that the January 20 inauguration of the Trump administration is a "clear deadline" but expressed that she is not overly concerned about the possibility of the subsidies being revoked.
Raimondo emphasized that the efforts are bipartisan, noting the Department of Commerce's unique role. She also highlighted that the CHIPS Act remains a national security program with strong bipartisan support.
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