The U.S. Commerce Department has reportedly thrown into disarray the SWACCA-supported CHIPS and Science Act’s $7.4 billion National Semiconductor Technology Center (NTSC) by canceling the Department’s contract with Natcast, the nonprofit created to operate the NTSC public private partnership. Natcast, backed by Intel, Apple, and Samsung, was intended to be the hub for U.S. chip R&D, workforce development, and prototyping facilities. Commerce Secretary Lutnick denounced Natcast as a “slush fund” for Biden allies, citing a new Trump Justice Department opinion that its formation under the Biden Administration violated federal law. The contract cancellation has forced Natcast to layoff over 90% of its 110 staff—and left dozens of planned projects in states like Arizona, New York, and California in limbo.
Secretary Lutnick has said he wants federal R&D investments to include stronger returns to taxpayers, such as equity stakes in companies, royalties and intellectual property rights—a departure from the non-profit model pursued by Natcast. This comes as the Commerce Department begins a new process to redirect the billions in CHIPS and Science Act funding to deals the Commerce Department negotiates directly with chipmakers and researchers in areas like artificial intelligence, biotech, and quantum computing.