President Donald Trump urged lawmakers on Mar. 4 to repeal the Chips and Science Act, which was passed with bipartisan support in 2022.

He proposed using unspent funds from the law to reduce the national debt.

The Chips Act, allocated US$52.7 billion to boost US semiconductor manufacturing and reduce reliance on foreign chips.

This included US$39 billion in manufacturing subsidies and US$75 billion in government loans to boost domestic semiconductor production.

The law aimed to reduce security risks associated with reliance on imported chips by encouraging major semiconductor companies to establish factories in the US.

Critics, including Trump, have questioned the law’s effectiveness. Meanwhile, the commerce department allocated over US$33 billion in awards to chipmakers.