President Donald Trump’s administration is renegotiating semiconductor funding agreements awarded under the CHIPS and Science Act.

Commerce Secretary Howard Lutnick told senators June 4 that some Biden-era deals were “overly generous” and are being revised to better protect taxpayers. Lutnick said only flawed agreements would be canceled, but that the administration is reevaluating all grant terms to ensure a stronger return on investment.

The CHIPS Act, passed in 2022, set aside $52.7 billion to revitalize U.S. semiconductor manufacturing and research, backing firms like Intel, TSMC, and Samsung. Lutnick also reaffirmed the administration’s goal to keep more than 50% of global AI chip capacity in the U.S., amid concerns over exports to countries like the UAE. 6/10/2025