The United States Chips Program Office is set to lose approximately 40% of its workforce due to staff reductions.

This comes as part of a broader restructuring and includes about 20 employees who accepted voluntary resignations and around 40 probationary staff members who are scheduled to be terminated.

The Chips and Science Act, signed into law in 2022, aims to boost domestic semiconductor production with US$39 billion in manufacturing grants and US$11 billion dedicated to research and development.

The workforce reduction could hinder the office’s ability to manage smaller manufacturing grants and supply chain projects that are still under review.

Most of the program’s manufacturing funds have already been allocated through binding contracts established before President Biden left office.