President Donald Trump, the former U.S. President, has condemned America's loss of its semiconductor sector to other countries, naming Taiwan and South Korea specifically.
Trump reiterated his condemnation of the CHIPS and Science Act during a White House press availability, declaring it a "tremendous waste of money." Signed into law in 2022 by President Joe Biden, the act seeks to increase domestic chip production through incentives and subsidies.
"We lost the chip business gradually, and now it's nearly entirely in Taiwan. They stole it from us. They took it from us," Trump said, speaking of the industry's former US dominance by entrepreneurs like the late Andrew Grove, who was once Intel's CEO.
He added, "We had the chip business, and now it's all in Taiwan, nearly exclusive. a little bit in South Korea, but predominantly in Taiwan."
Trump accused past administrations of permitting this transition, stating, "I don't blame Taiwan. I give them credit. I blame the people that were sitting in this seat. We could have protected that so easily."
His remarks are made in light of Taiwan Semiconductor Manufacturing Co. (TSMC) having announced a $100 billion investment in the United States to establish cutting-edge chip manufacturing facilities, on top of its current $65 billion venture in Arizona.
Trump also doubled down on his criticism of the CHIPS Act. In a congressional speech earlier, he urged its repeal, stating that it was an unnecessary cost.
"It's hundreds of billions of dollars, and it's just a waste of money," he alleged.
He also claimed that becoming eligible for subsidies under the act is challenging because of selection based on race and gender, further stating, "Nobody's ever seen anything like it."
Trump also compared his policy toward foreign investment, stating that during his administration, semiconductor firms increased their U.S. footprint because of tariffs instead of government subsidies.
"I didn't give foreign businesses 10 cents, and yet they came due to tariffs. And they also came because they agreed with the outcome of the election, understanding that I'm a very pro-business and pro-jobs individual," he stated.
His comments have been particularly significant in South Korea, since with the CHIPS Act, the Biden administration committed grants to Samsung Electronics and SK hynix to aid their chip production investments in the United States.
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