Reports indicate that Samsung could lose access to billions in U.S. semiconductor subsidies due to staffing cuts in the CHIPS Program Office under President Donald Trump’s administration. The office, which oversees subsidy payments under the CHIPS and Science Act, has reportedly seen most of its staff removed by Elon Musk’s DOGE (Department of Government Efficiency). This move raises concerns about delays or cancellations of critical funding for major chipmakers like Samsung, potentially disrupting U.S. semiconductor supply chain investments.
Trump Wants to End the CHIPS Act
President Trump has often said he wants to cancel the CHIPS Act. According to Chosun, about 120 of 150 employees at the CHIPS Program Office (CPO) have lost their jobs. This raises concerns about whether Samsung and SK Hynix will get their promised subsidies.
Uncertain Future for Samsung and SK Hynix
A senior Korean-American official questions if Samsung and SK Hynix will receive their subsidies. The staff cuts at the CHIPS Office make the situation unclear. These companies had planned to use the funds to expand their semiconductor production in the US.
Elon Musk’s Role in the Changes
Elon Musk, as head of DOGE, is leading major changes in Trump’s administration. He has reduced the CHIPS Office workforce, affecting its ability to process payments. It is also unclear whether Kim, a key official, resigned by choice or was forced to leave.
What Is the CHIPS Act?
Former President Joe Biden introduced the CHIPS Act to boost semiconductor production in the US. The act offers subsidies to big chipmakers. However, Trump has opposed it since the beginning. His administration’s actions now put its future at risk.
Samsung and SK Hynix Still Waiting for Payments
In 2023, the Biden administration promised $4.745 billion to Samsung and $458 million to SK Hynix. But neither company has received the money. With Trump’s opposition and changes in the CHIPS Office, these subsidies may never come.
Samsung and SK Hynix now face uncertainty. Political changes in the US may affect their plans and financial support.
Source: Giz China
