US Commerce Voids $7.4 Billion Biden-Era Semiconductor Grant Deal With Natcast Under CHIPS Act, Impacting ASU Lab and Chip Supply Chain

The U.S. Commerce Department has officially voided a $7.4 billion semiconductor manufacturing research grant program that was established during the Biden administration. The program, administered through a nonprofit organization called Natcast, was set up to oversee research and development funding under the CHIPS Act. The Commerce Department declared the agreement with Natcast illegal and has taken control of the funds, labeling the nonprofit a "slush fund." This decision has created uncertainty for semiconductor research initiatives, including projects at Arizona State University. The move has sparked concerns among experts and industry observers who argue that sustained U.S. technological leadership requires patient, long-term investments in key industries and infrastructure. Additionally, the reversal has coincided with challenges in the semiconductor supply chain, including an accumulation of semi-finished chips at Amkor and increased orders of AI chips by Chinese technology firms. Critics warn that this short-term policy shift risks undermining America's competitive advantage in the AI and semiconductor sectors.