United States Commerce Secretary Howard Lutnick is urging companies receiving federal semiconductor subsidies to significantly increase their investments in the US.

Sources indicate he is seeking tens of billions in additional investments without increasing the US$52 billion allocated by the 2022 Chips and Science Act.

Lutnick’s push follows Taiwan Semiconductor Manufacturing Co.’s (TSMC) decision to invest an extra US$100 billion in US facilities.

Some sources suggest withholding already awarded subsidies if companies don’t expand their plans.

Lutnick is also interested in expanding the Chips Act’s 25% tax credit, which many companies view as more valuable than direct grants. Any major changes to the tax credit would require Congress’s approval.

Meanwhile, delays in fund disbursements have left companies like Wolfspeed Inc. uncertain about receiving their funds.

President Donald Trump has criticized the Chips Act and signed an executive order creating the United States Investment Accelerator to oversee large projects and the distribution of Chips Act funds.