U.S. gov't seizes $7.4 billion semiconductor research fund created under Biden admin, calling it 'illegal' — Lutnick says fund 'served as a semiconductor slush fund that did nothing but line the pockets of Biden loyalists with American tax dollars'

Howard Lutnick giving the double finger gun gesture.

The U.S. Commerce Department has seized control of a $7.4 billion semiconductor research fund from the National Center for the Advancement of Semiconductor Technology (NATCAST), a private non-profit set up during the Biden administration, as per Reuters. Describing it as a "slushfund," for ex-Biden admin officials, the Commerce Department promised greater oversight and accountability for where the funds are being spent, but didn't provide any further detail.

One of the defining investments of the Biden administration was the CHIPS Act, which authorized close to $300 billion in investments to encourage the design, development, and manufacturing of cutting-edge semiconductors in the United States. The creation of NATCAST was a part of that, with $11 billion allocated for it to establish a range of research centers around chip design.