Republican senators show little interest in scrapping CHIPS Act, despite Trump's call

Earlier this week, President Donald Trump publicly called for repeal of the CHIPS Act during a televised speech before Congress, criticizing it for delivering wasteful corporate subsidies. While House Speaker Mike Johnson applauded Trump's remarks, many Republican lawmakers, Johnson included, were caught off guard and showed little interest in undoing the legislation, reports NBC.

"Your CHIPS Act is a horrible, horrible thing,” Trump said. "We give hundreds of billions of dollars, and it does not mean a thing. All that was important to them was they did not want to pay the tariffs. You should get rid of the CHIPS Act. And whatever is left over, Mr. Speaker, you should use it to reduce debt. Or any other reason you want to."

The CHIPS Act, passed in 2022 with bipartisan support, allocated $280 billion (in cash, loan guarantees, and tax credits) to boost domestic semiconductor manufacturing and research. It has already spurred investments from companies like Intel, GlobalFoundries, Samsung, SK Hynix, Texas Instruments, TSMC, and many others across different states.

The CHIPS Office estimated that the legislation and incentives motivated semiconductor companies to commit to making $400 billion – $500 billion investments in the U.S. industry.

Mike Johnson has a history of changing his views on the CHIPS and Science Act. Johnson initially suggested repealing the law in 2023 if Trump become the president, but quickly reversed his position after recognizing its importance in battleground districts.

When asked about the future of the act this week, Johnson did not commit to a repeal but acknowledged the need for reforms. He expressed concerns about how the Biden administration was implementing the program and indicated that Republicans would review Trump’s upcoming budget proposal before making decisions.

Other Republican senators, including Todd Young and John Cornyn, defended the law they helped to craft, arguing it has strengthened U.S. supply chains and national security.

Democratic leaders are strongly against the idea of repeal. Senate Minority Leader Chuck Schumer of New York emphasized that the law was designed to strengthen national security, outcompete China, and rebuild U.S. supply chains.

Senator Tammy Baldwin of Wisconsin pointed out that the COVID-19 pandemic exposed vulnerabilities in the country's reliance on foreign semiconductor production. She argued that the legislation had already begun delivering economic benefits.

Key Republican aides indicated in conversations with NBC there were no immediate plans to take action, as other legislative issues were more pressing. Senate Republicans also showed little enthusiasm for undoing the law, acknowledging its widespread economic impact, the difficulty of unraveling ongoing investments, and the time constraints of upcoming legislative sessions.

Even if Republicans wanted to dismantle the act, doing so would be difficult. The CHIPS Act passed with bipartisan support, and with Republicans holding only 53 Senate seats, they would struggle to reach the 60-vote threshold needed for repeal. Additionally, federal funding has already been allocated to projects across more than 20 states, making it legally and politically complicated to unwind.