Trump: "Semiconductor Act Should Be Repealed... Use That Money to Reduce Debt"

"Semiconductor Companies Will Build Factories in the U.S. to Avoid Tariffs"

U.S. President Donald Trump announced that he will repeal the CHIPS Act enacted by the previous Joe Biden administration.

On the 4th (local time), President Trump said in a joint session of the U.S. Congress held in Washington DC, "The CHIPS Act and everything left must be eliminated."

He then addressed House Speaker Mike Johnson, saying, "That money should be used to reduce debt or for any other reason as you see fit."

This remark came as he mentioned that after the launch of his second-term administration, big tech and semiconductor companies such as SoftBank, Oracle, Apple, and TSMC have promised large-scale investments in the U.S.

President Trump has criticized the CHIPS Act, which provides subsidies to companies investing in the U.S. semiconductor industry, arguing that imposing high tariffs can attract investments without the need for subsidies.

AP Yonhap News

After repeatedly criticizing the CHIPS Act as "terrible," President Trump pointed out, "We give hundreds of billions of dollars (in subsidies), but it means nothing," adding, "Semiconductor companies take our money but do not use it." He also emphasized, "The important thing is not that we give money to semiconductor companies, but that they do not have to pay tariffs," stating, "We don't need to give them money. They will come to invest because if they build (factories) in the U.S., they won't have to pay tariffs."

The CHIPS Act, passed bipartisanly by the U.S. Congress in 2022, centers on providing $52.7 billion in subsidies to companies building semiconductor manufacturing facilities in the U.S. With President Trump repeatedly expressing his intention to repeal the CHIPS Act, attention is focused on whether Korean semiconductor companies such as Samsung and SK Hynix, which have made large-scale investments in the U.S., will be affected.

This content was produced with the assistance of AI translation services.