A top Democrat this week accused the Trump administration of making the chip shortage worse by undermining key programs under the CHIPS Act. The shortage, which has already squeezed automakers and electronics manufacturers, is now hitting the crypto industry hard.
The criticism
The lawmaker, who sits on a key committee, said the administration's actions have undercut the very law designed to boost domestic chip production. The CHIPS Act, passed with bipartisan support in 2022, allocated billions to build new fabs and reduce reliance on Asian suppliers. But the White House has been accused of stalling funding and rolling back incentives, according to the Democrat.
Crypto's chip problem
For crypto miners, the chip shortage means higher prices and longer waits for ASICs and GPUs. Mining rigs rely on advanced semiconductors, and tight supply has pushed up costs. Some smaller mining operations have struggled to expand or even maintain their fleets. The shortage also affects hardware wallets and other crypto-related devices. The Democrat's criticism shows how policy decisions in Washington can ripple into digital asset markets.
What the CHIPS Act was supposed to do
The CHIPS Act aimed to bring semiconductor manufacturing back to the U.S. It included grants, tax credits, and research funding. But the Trump administration, the Democrat argues, has diverted or delayed those resources. The result: the U.S. remains dependent on foreign chipmakers, and the shortage drags on. The crypto industry, which grew rapidly during the pandemic, is now feeling the effects.
The lawmaker is calling for a review of the administration's handling of the CHIPS Act. Whether that leads to changes remains an open question. For now, crypto miners and hardware makers are left waiting for chips that aren't coming fast enough.
