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Former President Donald Trump has reignited debate over the future of the United States’ semiconductor industry by calling for the end of the $52 billion Chips Act subsidy program. This initiative, established during the Biden administration, has already attracted over $400 billion in investments from major corporations like Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) and Intel Corp (NYSE: INTC).

Trump criticized the program as a misuse of taxpayer money and instead proposed tariffs as a means to promote domestic chip production. He argued that tariffs could achieve similar objectives while simultaneously generating government revenue. Despite his criticism, the Chips Act is widely regarded as essential for national and economic security, with numerous projects already underway in various states.

Trump Administration to Review CHIPS Act

The Trump administration’s decision to review existing contracts under the Chips Act has raised concerns among companies benefiting from the program. TSMC, in particular, has expressed apprehension over potential modifications to their agreements.

Commerce Secretary Howard Lutnick has indicated that newly announced projects may not receive federal funds, further fueling uncertainty. This move has prompted industry leaders to question the future stability of their investments and the potential impact on the semiconductor supply chain. The review process is expected to be thorough, with implications for both domestic and international stakeholders.

INTC and TSM Stock Brief

Intel Corp. has experienced notable fluctuations in its stock price amid the ongoing discussions surrounding the Chips Act. As of March 5, 2025, the stock opened at $21.35 but saw a decline to $20.81. The day’s low reached $20.18, with a high of $21.36. In premarket trading, the stock has witnessed a decline of over 1% as of the time of writing.

Over the past year, the stock has seen a low of $18.51 and a high of $46.63. The company’s current market capitalization stands at $90.11 billion, with a dividend yield of 2.24%. Despite the recent dip, analysts maintain a “hold” recommendation, with a target mean price of $22.77.

In contrast, TSMC has shown resilience in the face of potential policy changes. The company’s stock opened at $183.00 and rose to $184.28 on March 6, 2025. The day’s high reached $184.74, with a low of $180.72. As of current premarket trading, the stock is down over 2.30%.
TSMC’s market capitalization is a robust $955.78 billion, and it boasts a dividend yield of 1.49%. Analysts have given the company a “strong buy” recommendation, with a target mean price of $243.837. TSMC’s robust financial metrics and strong market position suggest that it remains well-positioned to navigate any challenges that may arise from changes to the Chips Act.

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