The Chips Act might no longer exist. That is yet another significant obstacle for semiconductor stocks. The Trump administration’s anticipated actions to dismantle a significant federal scientific organization may present even another obstacle for chip equipment and semiconductor companies, as well as their stock prices.
- Reports from Bloomberg and Axios on Wednesday that the Trump administration intends to eliminate about 500 positions at the National Institute of Standards and Technology could be the final straw for the U.S. Chips Act, according to Semiconductor Advisors analyst Robert Maire. Overseeing and managing the funds for investments made during the Biden administration with the goal of supporting the U.S. semiconductor sector is one of the responsibilities of NIST, a lab inside the U.S. Commerce Department. The Chips Act provided tax credits for expensive manufacturing equipment and around $39 billion in subsidies for the construction of semiconductor plants in the United States.
- In a message to clients, Maire stated, “NIST personnel have confirmed that they expect firings soon, probably this week, and it sounds like Chips Act will be the primary target.” “The Chips Act program is dead by default if there are no employees left to administer it, because no one is left to write the checks or certify that companies have complied with the requirements.”
