Commerce Secretary Lutnick Abruptly Cancels $7.4B Natcast Semiconductor Funding
Commerce Secretary Howard Lutnick has abruptly cancelled $7.4 billion in funding for Natcast, a semiconductor development project. The move has left nearly $2 billion in industry initiatives across four states in limbo, with uncertain futures. The decision has also resulted in significant job losses and raised legal questions.
Natcast, which employed 110 people, has seen over 90% of its workforce lose their jobs following the funding act. The sudden cancelled has also put at risk major projects like the Albany Nanotech Complex in upstate New York, which had received $825 million in federal money and secured $9 billion in commitments from industry giants like IBM, Micron, and Applied Materials.
The Commerce Department plans to hold a webinar to discuss how the $7.4 billion will be redistributed. Chip companies are already vying for a share of the funds, despite fears of jeopardizing other CHIPS Act funding still under negotiation. The previous head of Natcast, Dr. Doris Schmitt, who worked in the semiconductor industry for 36 years, was dismissed following the decision. Arizona State University, which won $1.1 billion for a chip prototyping facility, found out about the cancellation through a letter from Lutnick.
The cancelled of Natcast's funding has thrown the future of several high-profile semiconductor projects into uncertainty. With the Justice Department now asserting that the Government Corporation Control Act was violated, the situation raises serious questions about the administration's handling of the matter. As companies remain silent due to fears of losing other funding, the semiconductor industry awaits clarity on the future of these critical projects.
