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 puts the funding of major chipmakers like Samsung at risk, and it has the potential to disrupt the supply chain investment of U.S semiconductor businesses.
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.
What Role Does Elon Musk Play in These Changes?
As the head of DOGE, Elon Musk leads several major changes in President Trump’s current administration. He has reduced the number of workers at the CHIPS office, and this has significantly affected its ability to process payments. A key official, Kim, is also no more in the office, and it is not clear whether he resigned willingly or was forced to do so.
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.
Payments Delayed for Samsung and SK Hynix
The Biden administration made a promise to fund Samsung with $4.745 billion and $485 million to SK Hynix in 2023. However, none of these companies has received these funds yet. Reports claim that Trump opposes these fundings, and changes in the CHIPS office could also mean the funds may never get to these companies.
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