Trump threatens changes to chipmaker contracts as CHIPS Act aims to boost U.S. production

President Trump has threatened to change federal contracts with chipmakers and impose new tariffs on semiconductors, which could hinder U.S. tech growth. This contrasts with the previous support for the CHIPS and Science Act aimed at boosting domestic chip production. The CHIPS Act, initiated by the Biden administration, has allocated $30 billion for projects across 15 states, creating 115,000 jobs. It aims to increase U.S. production of advanced chips from 0% to 30% of the global market. The act was a response to chip shortages during the COVID-19 pandemic, which affected various industries. The Biden administration's funding also seeks to reduce reliance on Asian suppliers, viewed as a security risk.