The proposed job cuts at the National Institute of Standards and Technology (NIST), which oversees the CHIPS for America program, threaten to eliminate funding necessary for semiconductor manufacturing and research in the US. The cuts signal a shift in strategy under President Trump, who plans to impose tariffs on imports instead of incentivizing domestic production. This move has raised concerns that it will deter companies from trusting the CHIPS Act for future projects, potentially stalling the reshoring of semiconductor manufacturing to America.
Trump made it clear over the last few days that he will institute 25% tariffs on imported semiconductor devices, so [it's] obvious that strategy is shifting from incentivizing US chip production to penalizing imports instead.
This also lowers the likelihood of TSMC taking over Intel manufacturing, as giving top US chip production to Taiwan contradicts the new strategy.
If I were running a chip company, I would not count on CHIPS Act funding - even if I had a signed contract, as it's clearly not worth the paper it's written on.
NIST plans to cut 497 jobs this week, which could effectively end the CHIPS Act and undermine efforts to reshore semiconductor manufacturing and research to the US.
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