The CEO of Arm Holdings, René Haas, breaks down the impact of the rate cutting cycle and is weighing on the law on “the countdown of the hoist”.
President Donald Trump On Tuesday, called on the congress to repeal the chips Act and its subsidies for flea manufacturers who build manufacturing facilities in the United States, citing the new investment of Taiwan Semiconductor Manufacturing Co. as showing that it is useless – although the company has previously received a grant from the flea law.
“Your flea law is a horrible and horrible thing. We give hundreds of billions of dollars, and that does not mean anything. They take our money, and they do not spend it,” Trump told a joint session of the Congress. “You should get rid of the flea law, and anything, Mr. President, you must use it to reduce debt. Or any other reason you wish.”
Trump had previously criticized the flea law in the head of the elections, affirming on the podcast “Joe Rogan Experience” in October that “the chip agreement was so bad”. The president criticized the sending of billions of dollars to “rich companies” and suggested imposing prices on foreign manufacturing fleas would be a better way to move production in the United States
Chip Giant TSMC to invest $ 100 billion in American manufacture
President Donald Trump called on Congress to repeal the flea law during his speech at Congress on Tuesday. (Win McNamee / Pool / AFP via Getty Images / Getty Images)
Chamber Mike Johnson, R-La., Told the press in November that the Republicans “would probably try to repeal the flea law, but quickly submitted his comments and declared in a subsequent statement that the legislation was” not on the agenda of the repeal “.
The law adopted the congress and was promulgated by the president of the time, Joe Biden, in 2022, on bipartite votes of 64-33 in the Senate and 243-187 in the Chamber, although the majorities of the Republicans of the two chambers were opposed to the bill.
Future of Chips acts under the Trump administrator in question
President Joe Biden is held behind a table, next to the CEO of Intel, Pat Gelsinger, while looking at Wafers of Chips while visiting the Intel Ocotillo campus in Chandler, Arizona, March 20, 2024. (Brendan Smialowski / AFP via Getty Images / Getty Images)
The flea law provided a total of $ 53 billion Federal incentives aimed at alleviating more national manufacture of semiconductors as well as research and development of advanced fleas.
Of this total, $ 39 billion has been reserved for a program administered by the Commerce Department which provides financial assistance to companies that build new existing or expanding semiconductor facilities.
According to the Bureau of the Chips Program within the National Institute of Standards and Technology of the Commerce Department, more than $ 36 billion in financing from the flea law had been awarded to January 23.
Trump says that he will introduce 25% of prices on cars, pharmaceutical products and flea
An American flag is displayed on the Intel Ocotillo campus in Chandler, Arizona, March 20, 2024. (Cassidy Araiza / Bloomberg via Getty Images / Getty Images)
Aside from investments related to the flea law, the association of semiconductor industry noted that in August 2024, there were almost $ 450 billion in private investments which aimed to increase interior manufacturing capacity.
TSMC, which produces a large part of the most advanced chips in the world, has received a reward of up to $ 6.6 billion in chips ACT subsidies for its semiconductor Manufacturing installations in Arizona.
He also announced investments totaling $ 65 billion to extend its Arizona facilities before its announcement this week of an investment of $ 100 billion to build new FABS, as well as a packaging center and a research center in the Phoenix region.
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Trump announced last month that he planned to impose Prices on imports of semiconductors It would be “25% or more” and would increase during the year, although he did not indicate when he announced these prices and offered no other details.
Breck Dumas of Fox Business contributed to this report.
