Donald Trump has called for the repeal of the CHIPS and Science Act, a key piece of legislation passed in 2022 to support semiconductor manufacturing in the US.

Trump criticised the law during a speech to Congress, describing it as a waste of hundreds of billions of dollars and suggesting the funds should instead be used to reduce national debt. His remarks mark his most forceful criticism of the act to date.

The CHIPS Act, signed by President Joe Biden, allocated$39 billion in subsidies for US semiconductor production and related industries, along with$75 billion in government-backed loans.

The initiative was part of a broader strategy to reduce reliance on foreign-made chips and address national security concerns.

Trump argued that rather than offering financial incentives, the government could avoid imposing tariffs to encourage semiconductor companies to build factories in the US.

However, the program has garnered support from officials, including Commerce Secretary Gina Raimondo, who played a key role in securing investments from leading global semiconductor firms like Samsung, Intel, and TSMC.

New York Governor Kathy Hochul defended the CHIPS Act, emphasising its role in bringing significant investment and job creation to the state, including Micron's$100 billion investment in Central New York.

Trump's comments have raised concerns about the future of these grants and the potential impact on such developments.