Trump’s proposed repeal of CHIPS law could cost jobs in Wisconsin

President Donald Trump is urging the repeal of a bipartisan 2022 law that has helped generate hundreds of billions of dollars in announced investment in the semiconductor manufacturing industry and is projected to create hundreds of thousands of domestic jobs.

The CHIPS and Science Act passed 64-33 in the Senate and 243-187 in the House of Representatives, with every congressional Democrat and dozens of Republicans voting in favor, and was signed into law by President Joe Biden. The law’s name is an acronym for “Creating helpful incentives to produce semiconductors.” It increased funding for American science and technology research and authorized billions of dollars in incentives to encourage businesses to manufacture semiconductors in the United States. 

In his March 4 address to Congress, Trump called for repeal of the law, which he said was wasteful: “Your CHIPS Act is a horrible, horrible thing. We give hundreds of billions of dollars, and it doesn’t mean a thing. … You should get rid of the CHIP [sic] Act. And whatever is left over, Mr. Speaker, you should use it to reduce debt or any other reason you want to.”

Trump claimed businesses take CHIPS funds without using them for the intended purposes. Asked for comment for this story, the White House press office replied, “Please refer to President Trump’s remarks during his Joint Address.”

In an April 2024 Financial Times op-ed called “The Chips Act Has Been Surprisingly Successful So Far,” Chris Miller, a nonresident senior fellow at the conservative-leaning American Enterprise Institute, wrote: “With recent multi-billion-dollar grants to Intel, TSMC, Samsung, and Micron, the US government has now spent over half its $39bn in Chips Act incentives. In so doing it has driven an unexpected investment boom.”

According to a 2024 Semiconductor Industry Association report: “As of August 2024, companies in the semiconductor ecosystem had announced more than 90 new manufacturing projects in the U.S. since CHIPS was first introduced in Congress, totaling nearly $450 billion in announced investments across 28 states. These investments are projected to create tens of thousands of direct jobs and support hundreds of thousands of additional jobs throughout the U.S. economy. The industry is also making investments in countries around the world, creating a resilient supply chain.”

While much of the funding has been spent or committed, repealing the law could imperil promised incentives and halt future investments and job growth.

Last July, Democratic Wisconsin Sen. Tammy Baldwin announced that Wisconsin had been designated a Biohealth Tech Hub under the CHIPS law and would receive $49 million for the state’s personalized medicine and biohealth sector, creating an estimated 30,000 personalized medicine jobs and 111,000 indirect jobs in Wisconsin over a decade and $9 billion in economic development over that time.

“Today’s announcement is proof of what we as Wisconsinites have long known: We have world-class universities, a second-to-none workforce, and a thriving private sector that will drive the next wave of American innovation. Make no mistake, this investment in the Badger State will create and support thousands of good paying jobs, grow our Made in Wisconsin economy, and revolutionize health care as we know it – helping people get the care they need earlier and faster,” Baldwin. “Today’s announcement recognizes our state’s rich history of innovation and manufacturing and doubles down on our state’s potential to be a major player in the next chapter of an up-and-coming industry.”

A spokesperson for BioForward Wisconsin, the trade group for the state’s biohealth sector, told the Wisconsin Independent: “The Wisconsin Biohealth Tech Hub is a critical driver of U.S. leadership in biohealth innovation, economic growth, and national security. EDA’s [Economic Development Administration] funding for the Regional Technology and Innovation Hubs (Tech Hubs) is not just an investment in Wisconsin—it is a critical investment in America’s ability to remain competitive in the global bioeconomy. At a time when other nations are rapidly advancing in biotechnology and life sciences, cutting this funding would put the U.S. at risk of falling behind. The Tech Hub strengthens our supply chain resilience, fosters groundbreaking medical advancements, and attracts private-sector investment that fuels job creation and economic prosperity.”

“This is not a partisan issue—it is a matter of ensuring that the United States continues to lead in an industry vital to public health, economic stability, and national security,” the spokesperson added. “Maintaining EDA support for the Wisconsin Biohealth Tech Hub is essential to securing our future as a global powerhouse in biohealth innovation.”

In an emailed statement, Baldwin told the Wisconsin Independent: “Thanks to our bipartisan CHIPS and Science Act, Wisconsin was named a Tech Hub – investing in our state’s personalized medicine and biohealth sector, creating good paying jobs, and boosting our competitiveness. Overturning this law would not only put those 30,000 jobs on the line and hurt our economy – it would put breakthroughs that could keep families healthy out of reach. You can bet I will fight any effort to take away these good paying jobs from Wisconsinites.”