PHOENIX (AZFamily)— Semiconductor makers are rushing to finalize deals with the Biden administration before the president leaves office because they worry about the future of the sector. CHIPS and Science Act under President-elect Donald Trump.

TSMC and Intel are building giant chip manufacturing plants in Arizona with the help of more than $31 billion in federal grants and loans under the CHIPS Act.

No state has become more initial financing commitments of the law than Arizona, but the money has not yet been paid.

Days before the election, Trump criticized the law and Republican leaders in Congress are discussing ways to reform it.

“This chip deal is so bad,” Trump said on the Joe Rogan podcast in October.

Trump said the federal government was giving billions to “rich corporations.” Instead of incentives, he said the right way to boost domestic manufacturing was to impose tariffs.

“You have to make them spend money in the United States and these factories would open. They will finance them. We don’t need to invest 10 cents,” Trump said.

U.S. Sen. Mark Kelly said Trump’s comments amounted to a threat to repeal the legislation.

“He wants to kill the CHIPS and Science Act. Removing this legislation would result in tens of thousands of people being laid off in the state of Arizona,” Kelly said.

Last week, House Speaker Mike Johnson said Republicans “will likely work” to repeal the law. He then issued a statement saying Republicans would work to streamline the law, not repeal it.

Business leaders say Trump would have limited authority to unilaterally change legislation, especially if companies reach deals with the Biden administration before the end of the year.

The Trump administration could change regulations added by the Commerce Department, such as environmental regulations and requirements for using a unionized workforce and providing child care for workers.

TSMC has committed $65 billion to build its Phoenix manufacturing plants, the largest investment in Arizona history. The project is expected to create more than 25,000 jobs, including 6,000 permanent jobs in the manufacturing sector.

TSMC has released a statement saying: “Our investment plan in the United States remains unchanged. »

Intel is in the middle of a $32 billion project in Chandler that is expected to create 3,000 manufacturing jobs and 7,000 construction jobs. The company expressed optimism, emphasizing how the law aligns with Trump’s broader policy goals.

“The idea behind the CHIPS and Science Act began during the first Trump administration and has strong bipartisan support. Restoring U.S. leadership in semiconductor manufacturing is integral to the country’s economic competitiveness and national security,” an Intel spokesperson said by email. “As the only American company to design and manufacture cutting-edge chips, Intel has a crucial role to play, and we look forward to working with the Trump administration on this shared priority.”

TSMC and Intel say their first manufacturing facilities are expected to come online in the first six months of 2025.

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