Trump, Musk, and DOGE Target CHIPS Act: Will Samsung Lose Billions in US Semiconductor Subsidies?
Samsung may face billions in lost subsidies from the US government under the CHIPS Act. Reports indicate that the Department of Government Efficiency (DOGE), under Elon Musk’s leadership, has overseen massive layoffs within the CHIPS Office, a key division responsible for subsidy distribution.
CHIPS Act Workforce Slashed Amid Trump’s Opposition
President Donald Trump has consistently vowed to repeal the CHIPS Act, casting uncertainty over its future. According to Chosun, nearly 120 out of 150 employees in the CHIPS Program Office (CPO) have been dismissed.
- The CPO plays a crucial role in processing subsidy payments for semiconductor companies.
- Layoffs at this scale could delay or block payouts to firms like Samsung Electronics and SK Hynix.
- A senior Korean-American official with knowledge of the situation has questioned whether South Korean firms will receive the promised subsidies.
Musk’s Role in CHIPS Office Restructuring
The massive downsizing of the CHIPS office is reportedly spearheaded by Elon Musk, who leads DOGE in the Trump administration.
- As part of a broader government restructuring, Musk is cutting costs across various departments.
- However, it remains unclear whether the resignation of key officials, including Kim, was voluntary or forced.
CHIPS Act Faces Political Uncertainty
The CHIPS Act, introduced by former President Joe Biden, aimed to boost semiconductor manufacturing in the US through financial incentives.
- Despite its economic importance, Trump has opposed the act since its inception.
- His administration’s stance raises concerns about whether Samsung and SK Hynix will receive their allocated funds.
Subsidies at Risk for Samsung and SK Hynix
Under the Biden administration, the CHIPS Act promised billions in subsidies to boost semiconductor manufacturing. However, with Trump’s opposition and the CHIPS Office layoffs, these funds are now uncertain.
Here’s a breakdown of the pledged subsidies:
- Samsung Electronics – $4.745 billion
- SK Hynix – $458 million
Despite these commitments, neither company has received the funds. The restructuring led by Elon Musk and Trump’s stance against the CHIPS Act could further delay or cancel these payments, putting South Korean firms at risk.
As Trump’s government reshapes US policy on semiconductor investments, Samsung and SK Hynix could face major financial setbacks, potentially altering their expansion plans in the US.
