TSMC agreed to build a series of chip plants in the US, with Apple a key customer, using subsidies provided by the bipartisan CHIPS Act. Trump has now called the Act ridiculous and wants to renege on the promised funding.If he followed through on the threat, it could throw into doubt the viability of the US chipmaking plants, and lead to cancellation of TSMCs expansion plans Made in America Apple chipsApple first announced its planfor Made in America chips back in 2022, with the news hailed as one of the success stories of the US CHIPS Act. This is a government subsidy program intended to free the US from dependence on China for advanced chip supplies and to generate jobs for US workers.The initiative will see a series of TSMC chipmaking plants built in Arizona, with some of the production reserved for Apple chips for older devices.A report last month suggested that test production is well underway at the first plant, with mass production not far away. A sizeable chunk of the subsidies are set to be used to establish production of smaller-process 2nm chips, starting from 2028.Trump may renege on CHIPS ActHowever, these plans have now been thrown into doubt by comments made by Trump. The Financial Times reports on his remarks.Trump wants to tax imported semiconductors and dismantle an incentive scheme under which Washington agreed to subsidise TSMCs pledged $65bn investment in US production capacity with grants worth $6.6bn []We dont want to give them billions of dollars like this ridiculous programme that Biden has, he said, adding that foreign chipmakers didnt need money, they needed an incentive, and the incentive is going to be, theyre not going to want to pay a 25, 50 or even 100 per cent tax []TSMC has to convince Trump to honour the Biden administrations subsidies deal, which it needs to make its Arizona investment plans feasible.9to5Macs TakeTrumps comments clearly make no sense. Hes saying he wants to force foreign chipmakers to establish production in the US, while threatening to remove funding from one which is about to start doing just that.The kindest interpretation would be that its a negotiating tactic, with Trump hoping to extract further concessions from TSMC after the deal was done. But at this point it would be hard for TSMC to trust anything the current administration offers in return, and the safest bet would be to cancel plans for expansion.The existing plant is a sunk cost, so production will almost certainly proceed there, but the chipmaker will likely reduce the volume commitments it made in return for the subsidies if they are reduced or withdrawn.Photo byLaura OckelonUnsplashAdd 9to5Mac to your Google News feed. FTC: We use income earning auto affiliate links. More.Youre reading 9to5Mac experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Dont know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel