Editorial: Trump, Congress should embrace CHIPS Act as America-first policy

Much of what’s said during a campaign is hyperbole. Some of it isn’t, of course. And it can be difficult to tell the difference, which makes it tough to evaluate whether President-elect Donald Trump and the GOP-controlled Congress will try to pull back on the CHIPS and Science Act, a law passed in 2022 to try to boost domestic production of semiconductors and other key technologies.

“That chip deal is so bad,” Trump said just a couple of weeks before the election on “The Joe Rogan Experience” podcast. “We put up billions of dollars for rich companies.”

Shortly thereafter, House Speaker Mike Johnson said Republicans “probably will” try to repeal the legislation—a statement he quickly walked back, saying he would like to instead “streamline” the law.

We urge the president-elect and Congress to be strategic as they consider next steps.

The CHIPS Act allocated $53 billion in federal incentives for U.S.-based semiconductor manufacturing and research and development. Some of that money is indeed going to big companies—many of them foreign-owned or based overseas. But those are companies spending money on production and research in the United States.

South Korean chip manufacturer SK Hynix Inc., for example, is set to receive up to $450 million from the CHIPS Act to build its $3.87 billion semiconductor packaging facility at the Purdue Research Park in West Lafayette. That project is a win not just for the United States but for Purdue University and Indiana, as well.

And two federal tech alliances overlapping in the state—the Silicon Crossroads Microelectronics Commons Hub and Heartland BioWorks Hub—have seen major funding. Silicon Crossroads was one of eight designees and saw $33 million in initial funding, while Heartland BioWorks was one of 12 and received $51 million.

We are heartened by a comment from U.S. Sen. Todd Young of Indiana, a Republican who was a lead author on the CHIPS Act. In a statement, he told IBJ he’s “confident the CHIPS Act is here to stay.”

The law’s other lead author, Senate Majority Leader Chuck Schumer, D-N.Y., recently told reporters the CHIPS Act “has always been bipartisan, so I believe it will certainly survive.”

Hopefully, that won’t be its downfall. We understand that the president-elect is coming into office with some skepticism of laws and programs created or approved by his predecessor and by the previous Congress. That’s the way government works—it’s part of the checks and balances that can make for a healthier government.

But thoughtfulness is key. We think the CHIPS Act could achieve many of the America-first goals Trump espoused in his first term and in his campaign. And the jobs that are created by more domestic microelectronics production will help many of the hardworking, middle-class Americans who sent Trump back to the White House.

The federal government should keep the commitments it has made under the CHIPS Act—and look for new ways to make the U.S. more competitive.•

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