The CHIPS Act, signed into law by President Joe Biden in 2022, aims to bring chip manufacturing back to the US, reducing reliance on foreign suppliers and creating new jobs. The law has already allocated $36 billion for projects across the country, with companies like Taiwan Semiconductor Manufacturing Company (TSMC) investing heavily in new facilities. However, President Trump's recent comments have thrown the future of the law into question, sparking concern among industry experts and lawmakers.

Repealing the CHIPS Act would require an act of Congress, which is no easy feat, especially given the slim Republican majority in both houses. GOP senators and representatives from states that benefit directly from the law would have to expend significant political capital to support its repeal. Moreover, the law has already shown promising results, with TSMC's plans to spend $165 billion on new chip facilities in Arizona, including $6.6 billion in grants via the CHIPS Act. The US currently accounts for only 10% of the world's chip production, with 75% of modern chip fabrication facilities based in Southeast Asia. Reshoring manufacturing would provide the US with a more robust supply of semiconductors, reducing the risk of supply chain disruptions.

Despite President Trump's comments, experts say there are no plans to kill the law, and the current budget proposal does not indicate any intention to repeal it. The semiconductor industry is a critical component of the US economy, and the CHIPS Act is a crucial step towards reducing reliance on foreign suppliers and creating new jobs. As the US continues to navigate the complex landscape of global trade and manufacturing, the CHIPS Act remains a vital piece of legislation, supporting the growth of the US semiconductor industry and ensuring a more secure and resilient supply chain. With the US aiming to increase its chip production, the CHIPS Act is poised to play a key role in shaping the future of the industry, and its fate will be closely watched by industry experts, lawmakers, and investors alike.