Vivek Ramaswamy, a co-leader of the Department of Government Efficiency (DOGE) appointed by Donald Trump, has criticized the subsidies under the U.S. CHIPS Act as “wasteful.” His statements come as the U.S. Department of Commerce engages in discussions with South Korean companies such as Samsung and SK hynix, although these firms have yet to receive any subsidies. Ramaswamy expressed concerns about the Biden administration's intent to finalize funding before Trump takes office in January, calling such actions inappropriate.
In a video shared on X, Ramaswamy highlighted an interview with Secretary of Commerce Gina Raimondo, where she discussed plans to expedite CHIPS Act funding. He indicated that he and Elon Musk, as leaders of DOGE, would scrutinize all contracts related to the CHIPS Act and other fiscal initiatives like the Inflation Reduction Act. Ramaswamy intends to recommend a thorough review of these expenditures by the Inspector General.
Following the recent elections, the Biden administration has reportedly secured over $16 billion in final subsidies for various companies, including TSMC, GlobalFoundries, Rocket Lab, BAE Systems, and Intel. Notably, on November 15, the Department finalized a $6.6 billion subsidy for TSMC's operations in Arizona, set to be distributed in phases. A U.S. official stated that at least $1 billion will be allocated to TSMC by the year's end, complementing the recently approved $1.5 billion for GlobalFoundries and $7.86 billion for Intel.
