Trump trashes CHIPS Act, questions swirl on $3.87B SK hynix plans in WL
Local officials and Sen. Todd Young, who carried CHIPS Act, seek clarification as President Trump suggests Congress scrap the semiconductor incentives. SK hynix had $458M OK’d by Biden administration
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TRUMP TRASHES CHIPS ACT FUNDING, QUESTIONS SWIRL ON $3.87B SK HYNIX PLANS IN WL
President Donald Trump’s suggestion Tuesday that Congress scrap the $52.7 billion CHIPS and Science Act and use the money elsewhere left questions swirling about how that might affect SK hynix’s $3.87 billion plans to build a facility in West Lafayette.
The South Korean company received word in August that it would get $458 million in federal CHIPS Act money as it makes plans to build a chip packaging and research facility at the Purdue Research Park.
The U.S. Commerce Department, under then President Joe Biden’s administration, also was expected to have access to up to another $500 million in federal loans to support development of a 430,000-square-foot facility on 90 acres north of Kalberer Road in West Lafayette.
Trump has been critical of the CHIPS Act in the past. On Tuesday, during a joint address to the U.S. House and Senate, Trump encouraged Congress to rescind the measure, saying that the “America First” policies he had in mind wouldn’t need those sorts of incentives to land investments from foreign companies.
“The CHIPS Act is a horrible, horrible thing,” Trump said Tuesday during a speech that went more than an hour and 40 minutes. “We give hundreds of billions of dollars, and it doesn’t mean a thing. They take our money, and they don’t spend it.”
Turning to House Speaker Mike Johnson, Trump said: “You should get rid of the CHIPS Act, and whatever is left over, Mr. Speaker, you should use it to reduce the debt.”
U.S. Sen. Todd Young, an Indiana Republican, carried the CHIPS Act and has touted it as fundamental in spurring American semiconductor research, development and manufacturing as an effort to avoid supply-chain interruptions and the potential political whims of overseas manufacturers.
On Wednesday, a Young spokesperson shared this: “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.”
SK Hynix officials said Wednesday evening they had no comment.
Purdue spokespeople referred questions to the company. U.S. Rep. Jim Baird, whose 4th District includes West Lafayette and who voted for the CHIPS Act in 2022, did not immediately respond to questions Wednesday.
West Lafayette Mayor Erin said the city would continue to plan for investment with SK hynix “and see the incredible potential for their investment in the United States and the state of Indiana.”
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