The semiconductor industry has dramatically escalated its lobbying efforts in Washington, with AI chip giant Nvidia quintupling its spending from $90,000 in 2022 to over $500,000 in 2023. This surge comes as the CHIPS and Science Act prepares to distribute more than $30 billion in incentives to chip companies, fundamentally reshaping the landscape for AI hardware manufacturers.
Intel leads the pack with $5.22 million in 2024 lobbying spend and has been awarded $7.9 billion in federal grants, with $1 billion received by the end of 2024. The Department of Commerce announced in November that it has awarded over $10 billion so far and expects to allocate all incentive funds this year. Taiwan Semiconductor Manufacturing Company (TSMC) invested $2.32 million in lobbying and secured $6.6 billion in funding, finalized on November 15. Micron received $6.1 billion (finalized December 10), while Samsung was awarded $6.4 billion but has not yet received the funds.
While chip designers like Nvidia and AMD are not direct CHIPS Act funding recipients, they maintain strong interest in shifting manufacturing dependence away from TSMC due to potential geopolitical conflicts in Taiwan. AMD spent $2.13 million on lobbying in 2024, focusing on AI policy, tax credits, and trade regulations.
The lobbying landscape features prominent “revolving door” figures who transitioned from government positions to private sector advocacy. Nvidia employs outside firms like The Nickles Group and Tiber Creek Group, with lobbyists focusing on AI policy, semiconductor design, and overseas export restrictions. Key Nvidia lobbyists include Luke Holland (former chief of staff to Sen. Jim Inhofe), Jeff Choudhry (former House Judiciary liaison), and Don Kent (former Department of Homeland Security official).
President Biden’s administration has scrambled to finalize CHIPS Act funding following Donald Trump’s election, who criticized the bipartisan legislation and advocated for higher tariffs. Trump nominated Howard Lutnick, a tariff advocate, as commerce secretary, creating uncertainty about future funding. According to Columbia Business School professor Lori Yue, companies are pushing to finalize grants short-term while building Republican connections long-term, as “government change would definitely affect lobbying.”
Chris Miller, author of “Chip War,” notes the increased lobbying “isn’t surprising” given that “more government policies are impacting the chip industry relative to several years ago–tariffs, incentives, tax policies, etc.” The semiconductor industry’s lobbying focus spans AI policy implementation, environmental permits for chip factories, export restrictions, US-China relations, and workforce development—all critical issues for the AI hardware ecosystem.
Key Quotes
Given that more government policies are impacting the chip industry relative to several years ago–tariffs, incentives, tax policies, etc.— it isn’t surprising that the chip industry is focusing more on this
Chris Miller, author of ‘Chip War: The Fight for the World’s Most Critical Technology,’ explains why semiconductor companies have dramatically increased lobbying spending. This context is crucial for understanding how government policy has become central to AI hardware development and competitiveness.
Government change would definitely affect lobbying as the executive branch has a lot of power in terms of regulation
Lori Yue, an associate management professor at Columbia Business School who studies corporate political strategy, highlights why the Trump administration’s election has created urgency for chip companies to finalize CHIPS Act grants and build new political relationships.
For example, they have worked on certain governmental issues before. They really know every single regulatory procedure on this issue. That person can be very valuable. Besides what they know is who they know: how can this person bring the company’s perspective to the policymakers and connect to the person in power?
Professor Lori Yue explains the strategic value of hiring lobbyists with government experience, illustrating why AI chip companies recruit former Hill staffers and agency officials who understand both regulatory processes and have direct access to decision-makers.
Our Take
The semiconductor lobbying arms race reveals a critical vulnerability in the AI industry’s foundation: its dependence on government-subsidized manufacturing infrastructure. Nvidia’s spending increase is particularly telling—despite not receiving direct CHIPS funding, the company recognizes that domestic chip production is existential for AI development.
The “revolving door” phenomenon raises important questions about regulatory capture and whether public AI policy serves innovation or incumbent interests. When former government officials immediately transition to lobbying for chip giants, it creates concerning conflicts of interest.
Most significantly, the Trump administration’s skepticism toward the CHIPS Act could create a strategic opening for China. While US companies lobby and wait, China’s state-directed semiconductor investments continue unabated. The irony is stark: tariffs may protect existing industries but could simultaneously handicap the AI sector’s access to cutting-edge manufacturing. The next two years will determine whether America’s AI ambitions are built on domestic silicon or geopolitical quicksand.
Why This Matters
This story reveals the massive financial and political stakes behind AI infrastructure development in the United States. The CHIPS Act represents the largest government investment in semiconductor manufacturing in decades, directly impacting the availability and cost of AI chips that power everything from ChatGPT to autonomous vehicles.
The lobbying surge demonstrates how AI companies recognize that government policy will shape competitive advantages in the global AI race. Nvidia’s quintupled spending reflects the company’s dominance in AI accelerators and its vulnerability to geopolitical supply chain disruptions. With over 90% of advanced chips manufactured in Taiwan, any conflict could cripple the AI industry overnight.
The Trump administration’s approach—favoring tariffs over subsidies—could fundamentally alter America’s AI competitiveness strategy. If CHIPS Act funding stalls or shifts, it may delay domestic AI chip production by years, leaving US tech companies dependent on foreign manufacturers. For businesses building AI products, this uncertainty affects long-term hardware costs, supply chain reliability, and strategic planning. The outcome will determine whether America can maintain its AI leadership or cede ground to China’s aggressive semiconductor investments.
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Source: https://www.businessinsider.com/chips-act-top-lobbyists-chip-companies-nvidia-tsmc-intel-2024-11