U.S. President Donald Trump said on March 4 he would repeal the CHIPS Act, a semiconductor subsidy program enacted under the Biden administration, a move that could impact South Korean chipmakers Samsung Electronics and SK Hynix.
Samsung and SK Hynix, which have invested heavily in the United States, were set to receive billions of dollars in subsidies under the program. Trump’s renewed pledge to dismantle it has raised concerns about the potential financial impact on these firms.
“Thanks to our America First policies, we have seen $1.7 trillion of new investment in America in just the past few weeks,” Trump said in a joint address to Congress. “SoftBank, one of the most brilliant anywhere in the world, announced a $200 billion investment. OpenAI and Oracle—Larry Ellison—announced a $500 billion investment. Apple announced a $500 billion investment. Tim Cook called me and said, ‘I cannot spend it fast enough.’ And just yesterday, Taiwan Semiconductor announced a $165 billion investment to build the most powerful chips on earth, right here in the U.S.A.”
Trump dismissed the CHIPS Act as a “horrible, horrible thing,” arguing that companies were investing in the U.S. not because of subsidies but to avoid tariffs.
“They take our money, and they don’t spend it,” he said. “All they really cared about was not paying tariffs, so they came and are building here. We don’t have to give them money. We just want to protect our businesses and our people, and they will come because they won’t have to pay tariffs if they build in America.”
Addressing House Speaker Mike Johnson, Trump urged Congress to scrap the CHIPS Act and redirect any remaining funds. “You should get rid of the CHIPS Act, and whatever’s left over, Mr. Speaker, you should use it to reduce debt—or for any other reason you want,” he said.
Trump has long criticized the semiconductor subsidy program, arguing that imposing high tariffs alone would be enough to attract investment. On the campaign trail, he previously called the legislation a “bad deal.”
Since Trump took office, Apple has announced a $500 billion investment in artificial intelligence server manufacturing in Texas. On March 3, TSMC Chairman C.C. Wei pledged at least $100 billion in additional U.S. investment after meeting with Trump. Trump has also signaled plans to impose a 25% tariff on semiconductors.
The CHIPS Act, passed with bipartisan support in 2022, provides $52.7 billion in subsidies to bolster U.S. semiconductor manufacturing and reduce reliance on China. Under the program, the Biden administration approved grants of $4.75 billion for Samsung and $458 million for SK Hynix.
