Indiana Congressmen react to President Trump’s call to ‘get rid of’ the CHIPS and Science Act

WASHINGTON, D.C.– During his State of the Union on Tuesday, President Donald Trump called on Congress to “get rid of” the CHIPS and Science Act — a move that caught several lawmakers on both sides of the aisle by surprise.

“Your CHIPS Act is a horrible, horrible thing,” President Trump told Congress. House Speaker Mike Johnson, who had previously backtracked comments late last year that CHIPS would be repealed, applauded the president’s comments.

The legislation originated during the first Trump Administration, but was signed into law by President Biden in 2022. The bipartisan act provided more than $50 billion to boost microchip/semiconductor manufacturing across the country.

“You should get rid of the CHIP[S] Act and whatever’s left over, Mr. Speaker,” President Trump said.

As of January 2025, most CHIPS dollars allocated for semiconductor manufacturing incentives have been spent. Indiana House Republicans said they anticipate the president will use CHIPS as a negotiating tool, and have pointed to his tariffs as an alternative to government subsidies.

“I think the president is interested in making America first,” Rep. Jim Baird (R-Indiana) said. “He’s going to want to make sure that America has the chance to stay confident in making chips.”

“[Trump]’s a business guy, and he knows that it’s better for our country when these private companies make investments into the United States rather than it being taxpayer dollars,” Rep. Marlin Stutzman (R-Indiana) said.

But according to the Semiconductor Industry Association, manufacturers can expect to pay 25-50% more to build a plant in the U.S. compared to several East Asian countries. A report from the association showed companies based in the U.S. manufactured 37% of all chips in 1990. In 2022, that number was just 10%.

“There are very serious supply chain concerns that could jeopardize our national security,” Rep. Andre Carson (D-Indiana) said.

Last year, South Korean company SK Hynix received close to a billion dollars through CHIPS to build an AI chip facility in West Lafayette. Tippecanoe County Commissioner Tom Murtaugh said he’s confident the project will be completed, but noted that federal turbulence may nip future projects of that size in the bud.

“There is some concern around federal funding overall,” Murtaugh said.

Two other Indiana tech hubs received a combined $84 million through CHIPS.

“If the policymakers, and the politicians really want this program to be successful, they’re going to have to do subsequent appropriations on scale with what they did originally,” John Fernandez, the former RIO for ARI (the company that houses both tech hubs), said during an interview in September 2024.

Several Republican senators said they’re open to making tweaks, but expressed hesitancy at getting rid of CHIPS altogether.

Lead Republican CHIPS author Sen. Todd Young shared the following statement with FOX59/CBS4 Friday night.

“We’re seeking clarity on those comments as they are not consistent with the extensive conversations we’ve had with the administration about the many successes and future of the CHIPS program and how it helps with our shared goal of creating a robust domestic chips supply.”

In a statement regarding the future of CHIPS, Indiana Chamber of Commerce CEO Vanessa Green Sinders said:

“Bringing back and now keeping semiconductor manufacturing in the U.S. is vital if we want to stay at the forefront of this incredibly important technology. The CHIPS Act invests in that production while also including significant research and development initiatives to bolster advanced industries. Indiana has stepped up to the plate to engage in these efforts — both through semiconductor manufacturing and several federal technology hubs — that are critical to the U.S. continuing to lead the world in innovation. We will continue engaging with Indiana’s congressional delegation to support this important work.”