The “CHIP law” may be revised or repealed after the US elections

The future of the US federal law “on chips and science” (CHIPS and Science Act), aimed at supporting the production of semiconductors in the country, was in question after the Speaker of the House of Representatives Mike Johnson announced a possible review of funding, up to its cancellation if the Republicans win the presidential election on Tuesday.

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Johnson said the Republican Party would likely attempt to repeal the law if it gained a majority in Congress. “I expect that this will most likely happen, but we have not yet developed this part of the agenda. First we have to go through the elections,” Johnson said in an interview with local media. According to The Register, Johnson’s comments echo recent statements by Donald Trump, who criticized the CHIPS law, calling it “horrible” and accusing Taiwan of stealing America’s chip business.

However, the speaker later softened his position, especially after Republican Brandon Williams of New York expressed opposition to the possible repeal of the law. Williams noted that the chip law is of great importance to his district, where Micron is planning to build a large plant. “I will remind Johnson day and night about the importance of this legislation and the need to begin construction of the Micron plant,” he added.

Recall that the law was passed by the 117th US Congress and signed by President Joe Biden in August 2022 to strengthen the semiconductor industry within the country. In accordance with this law, about $53 billion was allocated for the development of chip production, including $39 billion in subsidies for the construction of factories.

Shortly after Johnson expressed interest in repealing the law, Williams’ office released a statement softening the speaker’s comments. “I spoke with the speaker immediately after the event. He apologized, saying he misheard the question,” Williams said.

Meanwhile, Democratic presidential candidate Kamala Harris criticized Johnson’s statements, calling them another attempt by Republicans to deprive Americans of critical legislative measures. At the press conference, she noted, “Have we already heard about how they want to repeal the Affordable Care Act and now the CHIPS Act? My goal is to continue to invest in American manufacturing and support the good-paying jobs that will help us compete with China in the 21st century.”

The Register notes that while the Commerce Department has already distributed $36 billion, which largely went to Intel, Micron, Taiwan’s TSMC and South Korea’s Samsung Electronics, most of the funds have not yet been paid out. However, any failure in financing could have serious consequences for these companies, since, for example, Intel, TSMC and Samsung have already begun construction of factories in Arizona, Texas and Ohio and are awaiting reimbursement of costs.