Could President-elect Trump disrupt Arizona's semiconductor industry?

PHOENIX (AZ Family) — Semiconductor manufacturers are racing to finalize deals with the Biden Administration before the president leaves office because they are concerned about the future of the Biden Administration. CHIPS and the Science Act Under President-elect Donald Trump.

Both TSMC and Intel are building giant chip manufacturing facilities in Arizona with the help of more than $31 billion in federal grants and loans from the CHIPS Act.

No state had more starts than this financing commitments It was enacted rather than in Arizona, but the money has not yet been paid out.

In the days before the election, Trump had criticized the law and Republican leaders in Congress were discussing ways to reform it.

“This chip deal is so bad,” Trump said on the Joe Rogan Podcast in October.

Trump said the federal government is giving billions of dollars in bounties to “rich corporations.” He said that instead of incentives, the right way to encourage domestic production is to impose customs duties.

“You have to get them to spend money in the United States and those factories will open. They will finance these. We don’t have to put in 10 cents,” Trump said.

US Senator Mark Kelly said Trump’s comments amounted to a threat to repeal the law.

“He wants to eliminate CHIPS and the Science Act. Kelly said that eliminating this law would lead to the layoffs of tens of thousands of people in the state of Arizona.

Last week, House Speaker Mike Johnson said Republicans would “probably work” to repeal the law. He later released a statement saying Republicans would work in that direction. Simplify the law, not repeal it.

Business leaders believe Trump’s authority to unilaterally overturn the legislation will be limited, especially if companies reach a deal with the Biden Administration before the end of the year.

The Trump Administration could change regulations added by the Commerce Department, such as environmental regulations and requirements to use union labor and provide child care for workers.

TSMC has committed $65 billion for the construction of Phoenix manufacturing facilities. Largest investment in Arizona history. The project is expected to create more than 25,000 jobs, including 6,000 permanent manufacturing jobs.

TSMC published a statement expression “Our investment plan in the US has not changed.”

Intel is in the midst of a $32 billion project in Chandler that is expected to create 3,000 manufacturing jobs and 7,000 construction jobs. The company expressed optimism, emphasizing how the law aligns with Trump’s broader political goals.

“The idea behind CHIPS and the Science Act first began in the Trump Administration and maintains strong bipartisan support. Restoring America’s leadership in semiconductor manufacturing is integral to the nation’s economic competitiveness and national security,” an Intel spokesperson said via email. “As the only American company designing and manufacturing cutting-edge chips, Intel has a critical role to play.” “There is a role, and we look forward to working with the Trump Administration on this shared priority.”

Both TSMC and Intel say the first production facilities should come online in the first six months of 2025.

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