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The Department also accused the Biden adminitration of acting illegally in its formation of Natcast.
Responsibility for managing the NSTC will now be transferred to the National Institute of Standards and Technology (Representative/AP)
The US Department of Commerce announced Monday that it is cancelling a $7.4 billion semiconductor research fund originally established under the Biden administration, citing concerns over “waste, fraud, and abuse.”
The fund was intended to support the National Semiconductor Technology Center (NSTC), a flagship research initiative set up as part of the $52.7 billion CHIPS and Science Act signed into law by President Joe Biden in 2022. The act was designed to boost domestic semiconductor manufacturing and reduce US reliance on foreign chipmakers, particularly amid rising tensions with China.
BREAKING: The Department of Commerce is CANCELLING the $7.4 BILLION slush fund set aside in the final days of the Biden Administration.Natcast is a non-profit created and staffed by top Biden Administration political appointees.
The Trump Administration and the Department of…
— U.S. Commerce Dept. (@CommerceGov) August 25, 2025
Responsibility for managing the NSTC will now be transferred to the National Institute of Standards and Technology (NIST), a federal agency under the Commerce Department. Previously, the project was overseen by the National Center for the Advancement of Semiconductor Technology (Natcast), a non-profit established to operate the NSTC in coordination with private and public sector partners.
In a sharp statement, the Commerce Department criticised Natcast, calling it “a semiconductor slush fund” created to benefit political allies of the Biden administration. “Natcast is a non-profit created and staffed by top Biden Administration political appointees. The Trump Administration and the Department of Commerce are rooting out waste, fraud, and abuse — the days of taxpayer-funded think tanks and non-profits are OVER,” the statement read.
Commerce Secretary Howard Lutnick added, “From the very beginning, Natcast served as a semiconductor slush fund that did nothing but line the pockets of Biden loyalists with American tax dollars.”
The Department also accused the Biden administration of acting illegally in its formation of Natcast, claiming the non-profit was created to circumvent legal barriers, preventing government agencies from establishing corporations. “The Biden administration acted to protect Natcast from any real oversight or accountability and tie the hands of future administrations,” the Department said.
Natcast, for its part, had defended its work. In a statement last week, the organisation said it was “aligned closely with the priorities of the White House,” and described itself as “a linchpin to realising a more prosperous, competitive, and secure leadership position for America.”
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Washington D.C., United States of America (USA)
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