US Commerce axes $7.4bn Natcast semiconductor funds over ‘unlawful’ setup

The US Commerce Department has revoked up to $7.4bn semiconductor research grant following claims that the Biden administration unlawfully established the National Center for the Advancement of Semiconductor Technology (Natcast) to manage the funds.

Natcast is a private, non-profit corporation that was created after the CHIPS and Science Act was signed into law by the Biden Administration in August 2022.

At the time, the Chips Act directed the Commerce Department to create the National Semiconductor Technology Center (NSTC) to advance semiconductor R&D, workforce development, and supply chain security.

Instead, the Biden administration established a separate entity, Natcast, to run the NSTC’s consortium.