The U.S. Chips Program Office will lose close to forty percent of its staff, marking a divergence in President Donald Trump’s strategy from that of Joe Biden.

Also Read: Taiwan Semiconductor Weighs $100 Billion US Investment As Chip War Heats Up

Commerce Secretary Howard Lutnick suggested to Bloomberg that Trump tariffs have an edge over the erstwhile Chips Act.

He lauded how Trump convinced Taiwan Semiconductor to boost its U.S. investment by $100 billion to avoid tariffs instead of the erstwhile $65 billion Arizona fab investment in return for a 10% subsidy.

The Biden administration built an office of about 140 people to oversee the Chips Act manufacturing spending, in addition to staff responsible for R&D funding.

The semiconductor supply chain disruption due to the 2020 pandemic and alleged national security threats from countries like China prompted countries like the U.S., Europe, and Japan to consolidate the domestic semiconductor base.

Therefore, they forged deals with the chipmakers to construct fabs in their countries to develop advanced semiconductor technology, notably artificial intelligence technology, to unlock value.

U.S. Big Tech giants have downsized by a couple of thousands, citing a pandemic-induced slowdown, an efficiency drive, and other factors.

Also Read:

• Intel Gains Traction With 18A Process As Nvidia, Broadcom Consider Manufacturing Contracts

Photo: Nazrul Iznan via Shuttestock