After President Trump repeatedly expressed his intention to repeal the Chip and Science Act, the Korean media reported that the CHIPS Program Office (CPO) under the US Department of Commerce had cut 80% of its staff.

On March 31st, Chosun Ilbo exclusively reported that CPO was founded three years ago and originally employed about 150 employees. Now, it has been reported that 120 employees have been dismissed or encouraged to resign. Dan Kim (Korean name Kim Dong jin), who previously served as Vice President at SK Hynix's Washington D.C. office, also resigned from his position last week. Kim joined CPO nearly three years ago as Chief Economist and Director of Strategic Planning and Industry Analysis Department.

Insiders say that US Commerce Secretary Howard Lutnik hopes that companies that receive awards under the 2022 Chip and Science Act can follow in the footsteps of Taiwan Semiconductor Manufacturing Corporation. Taiwan Semiconductor Manufacturing Corporation recently announced that it will invest an additional $100 billion in its US factories on top of the previously promised $65 billion. Insiders say Lutnik's goal is to secure billions of dollars in additional semiconductor investment commitments without increasing the size of federal funding. Due to the involvement of private conversations, these informed individuals are unwilling to disclose their names.

Some insiders said that during the negotiation process, Lutnik's team suggested that he could cancel the subsidy payments that had already been agreed upon. Some insiders say that at the same time, Lutnik has expressed interest in expanding the separate 25% tax credit in the Chip Act. For most companies, this is more valuable than directly funding rewards. The significant changes in tax credits require approval from Congress.

Lutnik had previously stated that he intended to review the ruling of the Chip Act in order to gain what he called "transactional benefits". President Donald Trump, who had called on Congress to repeal the bill, signed an executive order on Monday that focuses in part on "negotiating a better chip bill agreement than the previous administration.

The directive established a new office within the Ministry of Commerce to encourage businesses to make large-scale investments in the United States. The White House stated that the US investment accelerator will facilitate projects worth over $1 billion and manage semiconductor subsidies.

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