White House seeks to renegotiate U.S. CHIPS and Science Act awards - Reuters
Investing.com -- The White House is currently in the process of reviewing and renegotiating the U.S. CHIPS and Science Act awards, according to Reuters, citing two sources familiar with the matter. The administration is looking at projects that were awarded under the 2022 law, which was designed to increase domestic semiconductor production with the help of $39 billion in subsidies.
The aim is to reassess and modify some of the existing requirements, leading to potential changes in the deals. However, the extent of these possible changes and their impact on the already finalized agreements remain unclear. The sources did not provide information about any action taken so far.
Leah Peng, a spokesperson for GlobalWafers, stated that the CHIPS Program Office has indicated that certain conditions not in line with President Donald Trump's executive orders and policies are now under review for all CHIPS Direct Funding Agreements.
GlobalWafers, a Taiwanese company, has not yet received direct communication from Washington regarding changes to the terms or conditions of their awards. The firm is slated to receive $406 million in U.S. government grants for projects in Texas and Missouri, but the subsidies will only be provided once certain milestones are reached in 2025.
Each recipient of the awards has unique terms and milestones outlined in their agreements. Four sources with knowledge of the discussions revealed that the White House has concerns about many of the terms tied to the $39 billion Chips and Science Act industry subsidies.
These concerns include additional clauses, such as requirements added by President Joe Biden's administration. These stipulations mandate that recipients must employ unionized labor to construct factories and assist in providing affordable childcare for factory workers.
The White House and the U.S. Department of Commerce have not yet responded to requests for comment.
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