Commerce Secretary Howard Lutnick voided a $7.4 billion semiconductor research agreement on August 25, 2025, claiming the Biden administration acted illegally in establishing the National Center for Advancement of Semiconductor Technology (NATCAST) as funding administrator.

The agreement was signed in January 2025 during Biden's final days, designating NATCAST—staffed by former political appointees including JMJason Matheny and Brenda Wilkerson—to operate the National Semiconductor Technology Center with $11 billion in CHIPS Act funding.

Lutnick's letter to NATCAST CEO Deirdre Hanford argued the arrangement violated the Government Corporation Control Act by creating an unaccountable outside entity without proper authorization to distribute taxpayer funds.

Responsibility for managing the NSTC transferred to the National Institute of Standards and Technology (NIST), a federal agency under direct Commerce Department control, eliminating the Biden-created nonprofit intermediary.

The semiconductor research initiative was designed to reduce U.S. reliance on foreign chipmakers amid rising tensions with China, supporting both the planned $5 billion research center in Tempe, 🌵Arizona and existing facilities in Albany, 🗽New York.

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