Article Summary –
President Donald Trump has called for the repeal of the CHIPS and Science Act, a bipartisan 2022 law that has led to significant investments in the U.S. semiconductor manufacturing industry and is expected to create hundreds of thousands of jobs. Critics, including Trump, argue that the funds are not being used as intended and that repealing the law would allow for reallocating funds to reduce debt, but supporters cite substantial economic benefits and job growth, such as the projected creation of 30,000 direct jobs in Wisconsin’s biohealth sector. Repealing the law could threaten future investments and job creation, with proponents emphasizing its importance for maintaining U.S. competitiveness in global technology and biohealth sectors.
President Donald Trump is advocating for the repeal of a bipartisan 2022 law that has spurred over $400 billion in announced investments in the semiconductor sector and aims to create hundreds of thousands of American jobs.
The CHIPS and Science Act was approved 64-33 in the Senate and 243-187 in the House, gaining support from all congressional Democrats and many Republicans. Signed by President Joe Biden, the act funds American tech research and provides billions to boost U.S. semiconductor manufacturing.
During his March 4 Congress address, Trump labeled the law wasteful, urging its repeal: “Your CHIPS Act is a horrible, horrible thing… You should get rid of the CHIP [sic] Act. And whatever is left over, Mr. Speaker, you should use it to reduce debt or any other reason you want to.”
Trump claims businesses misuse CHIPS funds. The White House press office commented, “Please refer to President Trump’s remarks during his Joint Address.”
In an April 2024 Financial Times op-ed, Chris Miller, a nonresident senior fellow at the conservative-leaning American Enterprise Institute, noted, “With recent multi-billion-dollar grants, the US government has now spent over half its $39bn in CHIPS Act incentives. In so doing it has driven an unexpected investment boom.”
A 2024 Semiconductor Industry Association report states: “As of August 2024, companies announced more than 90 new manufacturing projects in the U.S., totaling nearly $450 billion in investments across 28 states. These investments are projected to create tens of thousands of direct jobs and support hundreds of thousands of additional jobs throughout the U.S. economy.”
Despite substantial spending and commitments, repealing the law could jeopardize incentives and stall future investments and job creation.
Last July, Democratic Wisconsin Sen. Tammy Baldwin announced Wisconsin’s designation as a Biohealth Tech Hub under the CHIPS law, to receive $49 million for personalized medicine and biohealth, creating about 30,000 jobs and 111,000 indirect jobs over a decade, with $9 billion in economic growth.
A BioForward Wisconsin spokesperson told the Wisconsin Independent: “The Wisconsin Biohealth Tech Hub is crucial for U.S. biohealth innovation, economic growth, and national security. Cutting this funding risks the U.S. falling behind globally. The Tech Hub strengthens supply chain resilience, fosters medical advancements, and attracts private investment that fuels job creation.”
The spokesperson emphasized: “This is not a partisan issue—it is about ensuring the U.S. leads in a field vital to public health, economic stability, and national security.”
In an emailed statement, Baldwin stated, “Thanks to our bipartisan CHIPS and Science Act, Wisconsin was named a Tech Hub – investing in our state’s personalized medicine and biohealth sector, creating good-paying jobs, and boosting our competitiveness. Overturning this law would put those 30,000 jobs on the line and hurt our economy.”
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