U.S. President Donald Trump has repeatedly expressed his intention to repeal the CHIPS and Science Act. In line with that stance, approximately 80% of the staff at the CHIPS Program Office (CPO) within the U.S. Department of Commerce—a division created three years ago to oversee semiconductor subsidies—have reportedly been dismissed or urged to resign. Of the office’s roughly 150 employees, about 120 are said to have been affected.
Dan Kim (Korean name Kim Dong-jin), a former vice president at SK hynix’s Washington, D.C. office, also resigned last week. Kim had joined the CPO nearly three years ago as chief economist and director of strategic planning and industry analysis.
His departure, as a senior Korean American official with close knowledge of South Korean corporate operations, has further fueled concerns over whether the subsidies designated for Samsung Electronics and SK hynix will be distributed as planned.
Enacted in August 2022, the CHIPS and Science Act earmarked $52.7 billion (77.4 trillion won) to support the U.S. semiconductor industry—$39 billion for manufacturing facilities and $13.2 billion for research and development and workforce development.
To carry out this initiative, the Biden administration appointed Michael Schmidt, formerly of the U.S. Department of the Treasury, to lead the newly formed CHIPS for America office within the Department of Commerce. The office recruited a number of experts from the government, the semiconductor industry, and finance.
Kim joined the CPO as chief economist and head of strategic planning and industry analysis. At the time, the U.S. Department of Commerce announced his appointment, saying he brought expertise in international competitiveness and national security issues related to the semiconductor industry, having held senior positions in both the U.S. government and the private sector.
The staff reductions at the CPO are being overseen by Elon Musk, who currently leads the Department of Government Efficiency (DOGE) and is spearheading a sweeping restructuring of the federal bureaucracy. It remains unclear whether Kim’s resignation was voluntary.
South Korean companies are closely watching whether the subsidies approved under the previous Biden administration will be disbursed as planned. Any revisions to the original agreements under the Trump administration could affect the final amounts.
Samsung Electronics, which is constructing a semiconductor manufacturing facility in Texas, had been approved to receive $4.745 billion—equivalent to approximately 12.8% of its total investment—under the Biden administration. However, the funds have reportedly not yet been disbursed. Covington & Burling, the law firm representing Samsung in the subsidy process, has also come under scrutiny. The firm was sanctioned by executive order after Trump accused it of involvement in what he described as the Biden administration’s “weaponization of the legal system.”
SK hynix, which is set to receive $458 million, has likewise not received any funding, as its facility remains in the pre-construction phase.
