U.S. Commerce Secretary Howard Lutnick told the Senate Appropriations Committee that the White House is renegotiating with CHIPS Act recipients, hoping to push companies receiving the subsidies to pour more money into the American semiconductor projects. Taiwan Semiconductor Manufacturing Company (TSMC), which received $6.6 billion in grants from the U.S. government, set the precedent by announcing an extra $100 billion investment on top of its initial $65 billion commitment, and the White House seemingly wants other companies to follow suit, reports Bloomberg.
“Are we renegotiating? Absolutely, for the benefit of the American taxpayer, for sure. We’re getting more value for the same dollars,” Lutnick told the Senate committee. He also alluded that companies that refuse to play ball may not receive their payouts. “You will see that all the deals are getting better, and the only deals that are not getting done are deals that should have never been done in the first place.”
