US Commerce Secretary: We’re Renegotiating the Chip Act

US Commerce Secretary Howard Lutnick revealed that the current US administration, headed by Donald Trump, is renegotiating some grants provided by former US President Joe Biden to semiconductor companies under the Semiconductor Science and Technology Act, stating that a number of these grants may be revoked.

The Commerce Secretary told members of the US Senate Appropriations Committee that some of the grants under the former president “seemed very generous, and we’ve renegotiated them,” adding that the goal is to serve the interests of American taxpayers.

The Secretary added, “All the deals are improving, and the deals that don’t close are deals that shouldn’t have been made in the first place,” apparently indicating that some of the grants will not be completed during the renegotiation process, according to Reuters.

The former US President signed the Semiconductor Science and Technology Act in 2022, allocating $52.7 billion to be spent to achieve the goals of promoting chip manufacturing and research in America and attracting semiconductor manufacturers away from Asia.