Lutnick voids $7.4B semiconductor grant to Biden nonprofit

Commerce Secretary Howard Lutnick voided a $7.4 billion semiconductor research agreement on Aug. 25, 2025. He claimed the Biden administration acted illegally in establishing NATCAST as funding administrator.

The agreement was signed on Jan. 16, 2025 during Biden's final days. It designated NATCAST to operate the National Semiconductor Technology Center with up to $7.4 billion in CHIPS Act funding.

Jason Matheny and Brenda Wilkerson served on the Selection Committee that chose NATCAST's leadership. Lutnick argued this arrangement violated the Government Corporation Control Act.

Lutnick's letter to NATCAST CEO Deirdre Hanford argued the nonprofit created an unaccountable outside entity. He said it lacked proper authorization to distribute taxpayer funds.

Responsibility for managing the NSTC transferred to the National Institute of Standards and Technology (NIST). This eliminated the Biden-created nonprofit intermediary under direct Commerce Department control.

The semiconductor research initiative was designed to reduce U.S. reliance on foreign chipmakers. It supports research facilities in Tempe, 🌵Arizona and existing facilities in Albany, 🗽New York.

Lutnick accused NATCAST of serving as a 'semiconductor slush fund' for political allies. He threatened legal action against the nonprofit for improper handling of federal research funds.