To: Les H who wrote (45130 ) 2/27/2025 7:33:03 PM From: Les H Read Replies (1) | Respond to The Trump administration is set to significantly weaken the CHIPS Act by terminating hundreds of employees at the National Institute of Standards and Technology (NIST), the agency responsible for administering the semiconductor incentive program. Bloomberg , nearly 500 NIST employees, many of whom were recently hired to support the CHIPS Act, are expected to be dismissed under the pretext of “probationary” firings . Mass Firings Threaten CHIPS Act Viability According to Robert Maire , an author at SemiWiki, an open forum for semiconductor professionals, NIST, the federal agency under which the CHIPS Act operates, is reportedly preparing to cut 497 employees, with the vast majority working directly on the program. He says, according to sources familiar with the matter: 57% of CHIPS staff focused on incentives will be let go. 67% of CHIPS staff focused on research and development will be terminated. 74 postdoctoral researchers will be among those dismissed. AI and Cybersecurity Programs Also Targeted The layoffs extend beyond semiconductor initiatives. Reports indicate that programs focused on artificial intelligence safety and cybersecurity will also be significantly affected. A Shift in Semiconductor Strategy President Trump has signaled a pivot from the CHIPS Act’s subsidy-based approach to a tariff-based strategy, proposing a 25% tariff on imported semiconductor devices. Instead of directly subsidizing domestic manufacturing, this move aims to penalize foreign chip imports. ramifications could be severe , as the US remains heavily dependent on semiconductor imports. Currently: 100% of AI chips used in the U.S. are imported from Taiwan. Intel increasingly relies on foreign production. 100% of AMD’s chips and the vast majority of memory chips are manufactured overseas. With mass terminations imminent , the institute’s ability to continue its mission is in jeopardy. Fueling Uncertainty The expected dismantling of the CHIPS Act is likely to create uncertainty across the semiconductor industry. Companies that previously relied on CHIPS Act funding may now reconsider their investment plans. could see a downturn in wafer fabrication equipment (WFE) spending, reversing earlier projections of a stable or slightly positive year for the sector. link
