{"id":19836,"date":"2025-10-05T17:59:14","date_gmt":"2025-10-05T17:59:14","guid":{"rendered":"https:\/\/lonecandle.com\/?p=19836"},"modified":"2025-10-05T17:59:15","modified_gmt":"2025-10-05T17:59:15","slug":"semiconductor-slush-fund-how-the-trump-admin-seized-control-of-bidens-7-4-billion-chips-initiative","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=19836","title":{"rendered":"\u2018Semiconductor slush fund\u2019: How the Trump admin seized control of Biden\u2019s $7.4 billion chips initiative"},"content":{"rendered":"\n

“Natcast signed on 200 members \u2014 notably, Nvidia, Intel, Apple, Samsung, Google and AMD \u2014 to pursue breakthroughs in the foundational technology that powers virtually every modern asset from AI to defense systems. The group spent its year-and-a-half existence trying to set up and eventually run a national hub where that R&D would happen, along with programs to ease the semiconductor industry\u2019s severe talent crunch<\/a>.<\/p>\n\n\n\n

Lutnick\u2019s clawback produced deep uncertainty while companies, researchers and lawmakers scrambled to understand where it leaves over a dozen awardees, plus the remaining billions. Nearly $2 billion was promised to infrastructure, research and workforce projects in states like Arizona, New York, California and Texas.<\/p>\n\n\n\n

…<\/p>\n\n\n\n

The Commerce head has focused its dealmaking heavily on chipmakers. His new \u201cinvestment accelerator\u201d was handed<\/a> supervision of tens of billions of dollars in CHIPS subsidies and ordered to negotiate \u201cmuch better deals than those of the previous administration.\u201d The undermining of Natcast followed an agreement to grant the U.S. a 10 percent stake in Intel, when Lutnick redid the terms of its CHIPS award.<\/p>\n\n\n\n

Seven people, including from three Capitol Hill offices, raised concerns with the possibility that renegotiations for this $7.4 billion may involve similar government equity stakes. People also questioned whether requirements to share revenue from research patents could be under consideration. Lutnick spoke about subjecting<\/a> universities to the idea the day after he voided the Natcast contract.<\/p>\n\n\n\n

…<\/p>\n\n\n\n

When the agency started soliciting<\/a> proposals for R&D funding last week, it told applicants, as a condition<\/a> of an award, they \u201cmay be required to issue to the Department equity, warrants, licenses to intellectual property, royalties or revenue sharing, or other such instruments to ensure a return on investment.\u201d The guidelines do not mention the national hub, yet cite the law<\/a> that established it.  <\/p>\n\n\n\n

LC: If we need these companies to produce important technology, then we don’t need special deals to help them. We should help them because it is good for the country. The technology will produce a better economy and therefore more normal tax revenue. If we want these companies to pay us back directly, just make sure they are paying their normal taxes.<\/p>\n\n\n\n

…<\/p>\n\n\n\n

\u201cThey decided to burn two years of delay to try to create their own thing,\u201d said a former Trump official, who, like several others for this report, was granted anonymity to discuss a sensitive topic. \u201cWhile Natcast was not a Republican initiative and wasn\u2019t how we wanted it go, I think it was better than burning down the whole system and starting over again.\u201d<\/p>\n\n\n\n

…<\/p>\n\n\n\n

\u201cThe companies are scared,\u201d said a person familiar with the industry dynamics. \u201cCompanies want CHIPS funding, and they\u2019re very afraid that if they speak out, they\u2019ll lose it. No one wants to come into the crosshairs of the administration.\u201d<\/p>\n\n\n\n

…<\/p>\n\n\n\n

\u201cThere\u2019s just a feeling of, for many of us, a year\u2019s work going down the tubes, taxpayer dollars being flushed down the toilet,\u201d said one person closely associated with Natcast.”  <\/p>\n\n\n\n

…<\/p>\n\n\n\n

An industry lobbyist said, \u201cthose who stand to lose the most in this process will be start-ups and research centers that were at the cutting edge of innovation.\u201d”  <\/p>\n\n\n\n

https:\/\/www.politico.com\/news\/2025\/09\/30\/lutnick-natcast-chips-biden-00576779?nid=0000014f-1646-d88f-a1cf-5f46b7bd0000&nname=playbook&nrid=00000166-4638-d3a5-abf6-5e389b250000<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

“Natcast signed on 200 members \u2014 notably, Nvidia, Intel, Apple, Samsung, Google and AMD \u2014 to pursue breakthroughs in the foundational technology that powers virtually every modern asset from AI to defense systems. The group spent its year-and-a-half existence trying to set up and eventually run a national hub where that R&D would happen, along with programs to ease the semiconductor industry\u2019s severe talent crunch.
\nLutnick\u2019s clawback produced deep uncertainty while companies, researchers and lawmakers scrambled to understand where it leaves over a dozen awardees, plus the remaining billions. Nearly $2 billion was promised to infrastructure, research and workforce projects in states like Arizona, New York, California and Texas.<\/p>\n

…<\/p>\n

The Commerce head has focused its dealmaking heavily on chipmakers. His new \u201cinvestment accelerator\u201d was handed supervision of tens of billions of dollars in CHIPS subsidies and ordered to negotiate \u201cmuch better deals than those of the previous administration.\u201d The undermining of Natcast followed an agreement to grant the U.S. a 10 percent stake in Intel, when Lutnick redid the terms of its CHIPS award.<\/p>\n

Seven people, including from three Capitol Hill offices, raised concerns with the possibility that renegotiations for this $7.4 billion may involve similar government equity stakes. People also questioned whether requirements to share revenue from research patents could be under consideration. Lutnick spoke about subjecting universities to the idea the day after he voided the Natcast contract.<\/p>\n

…<\/p>\n

When the agency started soliciting proposals for R&D funding last week, it told applicants, as a condition of an award, they \u201cmay be required to issue to the Department equity, warrants, licenses to intellectual property, royalties or revenue sharing, or other such instruments to ensure a return on investment.\u201d The guidelines do not mention the national hub, yet cite the law that established it. <\/p>\n

LC: If we need these companies to produce important technology, then we don’t need special deals to help them. We should help them because it is good for the country. The technology will produce a better economy and therefore more normal tax revenue. If we want these companies to pay us back directly, just make sure they are paying their normal taxes.<\/p>\n

…<\/p>\n

\u201cThey decided to burn two years of delay to try to create their own thing,\u201d said a former Trump official, who, like several others for this report, was granted anonymity to discuss a sensitive topic. \u201cWhile Natcast was not a Republican initiative and wasn\u2019t how we wanted it go, I think it was better than burning down the whole system and starting over again.\u201d<\/p>\n

…<\/p>\n

\u201cThe companies are scared,\u201d said a person familiar with the industry dynamics. \u201cCompanies want CHIPS funding, and they\u2019re very afraid that if they speak out, they\u2019ll lose it. No one wants to come into the crosshairs of the administration.\u201d<\/p>\n

…<\/p>\n

\u201cThere\u2019s just a feeling of, for many of us, a year\u2019s work going down the tubes, taxpayer dollars being flushed down the toilet,\u201d said one person closely associated with Natcast.” <\/p>\n

…<\/p>\n

An industry lobbyist said, \u201cthose who stand to lose the most in this process will be start-ups and research centers that were at the cutting edge of innovation.\u201d” <\/p>\n

https:\/\/www.politico.com\/news\/2025\/09\/30\/lutnick-natcast-chips-biden-00576779?nid=0000014f-1646-d88f-a1cf-5f46b7bd0000&nname=playbook&nrid=00000166-4638-d3a5-abf6-5e389b250000<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[375,1229,221,1469,1193,780,279,1005,170],"class_list":["post-19836","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-biden","tag-chips","tag-donald-trump","tag-government-intervention","tag-government-spending","tag-joe-biden","tag-spending","tag-technology","tag-trump"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19836","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19836"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19836\/revisions"}],"predecessor-version":[{"id":19837,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19836\/revisions\/19837"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}