


Arizona Democrats offered harsh feedback after President Donald Trump said he wants the legislative body to do away with the bipartisan Creating Helpful Incentives to Produce Semiconductors and Science Act, which set aside $39 billion in grants for companies building new semiconductor manufacturing sites in the United States.
Congress passed the law in 2022, with 17 Republicans in the Senate voting for it. The law funded a new semiconductor plant from the Taiwan Semiconductor Manufacturing Company Limited in Phoenix, Arizona, prompting Democrats to defend the legislation as vital to the state’s economy.
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“Getting rid of the CHIP act just to be vindictive against Biden will destroy Arizona’s economy,” Sen. Ruben Gallego (D-AZ) said on X.
“‘Get rid of the CHIPS Act.’ Really, President Trump? It’s creating tens of thousands of Arizona jobs,” Sen. Mark Kelly (D-AZ) said.
Kelly added in a separate post that the CHIPS Act “is what helped get TSMC to the US and Arizona. And it brought their $100 billion announcement that came earlier this week—at the White House.”
“Getting rid of the CHIPS Act would hurt the entire American microchip industry, including suppliers, American companies, and more. Plus, it unravels the years of bipartisan work it took to bring these investments to Arizona,” he said. “We can’t let politics get in the way of that.”
Rep. Greg Stanton (D-AZ) said, “Getting rid of the CHIPS Act would be catastrophic.”
The day before Trump’s joint address to Congress, in which he expressed his desire to get rid of the CHIPS Act, Trump touted an additional $100 million investment from TSMC into Arizona. The company will receive a 25% manufacturing investment tax credit under CHIPS, which amounts to major savings for any corporate project. So far, it has received at least $1.5 billion of its total $6.6 billion CHIPS Act award.
“We’re not giving them any money. Your CHIPS Act is a horrible, horrible thing,” Trump said as he turned to House Speaker Mike Johnson (R-LA). “You should get rid of the CHIPS Act and whatever’s left over, Mr. Speaker, you should use it to reduce debt or any other reason you want to.”
Johnson previously floated the idea of getting rid of the CHIPS Act on the campaign trail last year but quickly walked it back, suggesting he’d simply like to “streamline” the legislation.
“All the Republicans reluctantly standing and clapping in support of Trump suggesting they cut the CHIPS Act. Remember that when they brag about the related investments,” Rep. Yassamin Ansari (D-AZ) said.
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The Washington Examiner reached out to Reps. David Schweikert, Paul Gosar, Eli Crane, Juan Ciscomani, Andy Biggs, and Abe Hamadeh, who comprise the entirety of Arizona’s Republican congressional delegation, but did not receive a response.
The TSMC plant, which has created thousands of jobs in Phoenix, is located in Hamadeh’s district. He was not in office when the CHIPS Act was passed.