The Trump administration has reportedly dismissed dozens of staffers from the government office that oversees CHIPS Act financing deals.

The move was first reported by Bloomberg on Monday. Today, Reuters cited two sources as saying that 60 of the office’s 140 employees have left over the past week. The office’s chief investment officer is reportedly among them. 

The CHIPS Act is a 2022 law that allocated $53 billion in grants and loans to the U.S. semiconductor sector. The bulk of the financing was awarded to chipmakers last year but has not yet been disbursed. Intel Corp., Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. are among the recipients. 

The office that oversees CHIPS Act financing agreements is part of the U.S. Commerce Department. According to Reuters, 20 staffers left last week after accepting deferred resignations. On Monday, administration officials reportedly fired 40 probationary employees, or workers who began their roles in the past two years.

Some CHIPS Act financing was reportedly disbursed last year. However, the bulk of the funds will only be made available to chipmakers if they meet certain fab construction and manufacturing milestones. The layoffs at the CHIPS Act office reportedly won’t have a “major impact” on the teams that track whether those milestones are being met.

According to Bloomberg, the job cuts also won’t affect staffers who focus on negotiating with chipmakers about their funding agreements. Last month, the Trump administration reportedly indicated that it plans to delay some funding disbursements. 

It’s unclear how the layoffs will affect the CHIPS Act office’s other activities, such as the management of a $500 million supply chain program launched in 2023. The initiative is designed to support companies that make manufacturing equipment and chemicals for fabs. Such companies can apply for funding if they plan to build, expand or modernize production facilities for less than $300 million.

The job cuts at the CHIPS Act office come days after the Trump administration launched a review of the legislation. According to Reuters, officials are seeking to renegotiate some financing awards. The White House is reportedly concerned about “many” of the terms in CHIPS Act funding agreements.

The two largest funding awards were issued to Intel and TSMC last November.

Intel secured $7.86 billion in direct grants along with up to $11 billion worth of loans. The company will use the funds to build fabs and research centers in five states. Intel last week disclosed that one of the planned facilities, a fab in Ohio, will open five years later than originally planned. 

TSMC, in turn, received up to $11.6 billion worth of grants and loans to support the construction of its Arizona chip complex. The first fab on the site began high-volume production late last year. The two other plants, which use more advanced manufacturing technologies, are set to come online by the end of the decade. 

The Trump administration is reportedly exploring a plan that would see TSMC take over Intel’s fabs. According to Bloomberg, such a deal could lead changes to the CHIPS Act awards issued to the two companies. It’s also believed several U.S. chip designers may take stakes in Intel’s fab network if the transaction materializes.

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