In March 2023, President Donald Trump criticized the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022, labeling it as detrimental. The CHIPS Act, enacted under President Joe Biden, allocated $52 billion to enhance domestic semiconductor manufacturing, with the administration asserting it would strengthen American manufacturing, supply chains, and national security while creating numerous well-paying jobs.

Skepticism regarding the efficacy of the previous administration's industrial policies was prevalent, as initial funding often supported projects that were already underway or economically questionable. Trump suggested that Congress should eliminate the CHIPS Act and redirect the remaining funds to reduce national debt or for other purposes. However, subsequent actions by Trump indicated a shift towards utilizing CHIPS funding for his own industrial policy initiatives, which raised concerns about accountability and taxpayer impact.

Intel, a major recipient of CHIPS funding, was set to receive $11 billion for semiconductor fabrication facilities across various states. By late summer 2023, Intel had received over $5 billion but faced challenges in meeting its commitments, including layoffs and delays in factory construction. By mid-2025, Intel's viability appeared uncertain.

The CHIPS Act included provisions allowing the federal government to reclaim funds if Intel failed to fulfill its obligations. However, Trump's administration intervened, leading to a partial federal ownership stake in Intel, effectively nationalizing a portion of the company. This move was characterized as a bailout, relieving Intel of certain public obligations while transferring financial risks to taxpayers.

Despite initial claims of revitalizing American investment in domestic companies, both the Biden and Trump administrations have been criticized for the lack of tangible returns on taxpayer investments in the semiconductor sector. Trump's actions, while framed as beneficial for Intel, raised significant concerns about the implications for public accountability and the financial burden on taxpayers.