U.S. President Donald Trump announced plans to abolish a bipartisan law passed in 2022 that allocates over 52 billion U.S. dollars in subsidies to semiconductor production facilities.

In a speech to Congress on Tuesday, Trump called for the repeal of the CHIPS and Science Act, urging Mike Johnson, speaker of the House of Representatives, to use the funds to reduce debt and for other purposes.

While the law was enacted to attract investment from foreign companies, Trump said there is no need to give the companies money, suggesting the same goals could be achieved through his tariff policy.

Under former U.S. President Joe Biden, then-Secretary of Commerce Gina Raimondo convinced five leading-edge semiconductor firms to establish factories in the U.S. by offering government grants.

In December, the Biden administration finalized direct funding of up to four-point-745 billion dollars to Samsung Electronics to support chip production in Texas.

It also announced it would provide up to 458 million dollars in direct funding to SK hynix for its investment in Indiana.