The U.S. Department of Commerce has moved to strip Natcast, a private nonprofit created under the Biden Administration, of its role as operator of the National Semiconductor Technology Center (NSTC). Secretary Howard Lutnick said NIST will now assume direct control of the NSTC, citing legal violations in how Natcast was established and awarded up to $7.4 billion in federal funding under the CHIPS and Science Act. The Department determined the Biden-era agreement granting Natcast control was “void ab initio” and unenforceable.
Natcast, incorporated in 2023, was intended to run the NSTC as a public-private consortium to advance semiconductor R&D, prototyping, workforce development, and supply chain security. The Commerce Department under the Biden Administration structured it as an independent nonprofit with trustees and executives, many of whom previously served in Commerce or on CHIPS-related advisory committees. Documents show that agency officials drafted bylaws, incorporation guidance, and operational policies for Natcast, a move the current Commerce Department says violated the Government Corporation Control Act, which prohibits agencies from creating corporations without explicit legal authority.
Under the new directive, NSTC operations and funding oversight will remain within the Department of Commerce and NIST. Lutnick criticized Natcast as “a semiconductor slush fund” for Biden loyalists and pledged reforms to improve transparency and statutory compliance. The Department said it may seek legal remedies against Natcast, and all obligations under its prior agreement will be considered the nonprofit’s “sole risk and liability.”
- Commerce Department revoked Natcast’s role as NSTC operator.
- NIST will assume direct responsibility for NSTC operations and funding.
- Agreement granting Natcast up to $7.4 billion in taxpayer funds declared invalid.
- Biden-era officials accused of violating the Government Corporation Control Act.
- Legal action against Natcast remains possible.
“Ending this illegal relationship between Natcast and the NSTC will ensure that the Commerce Department keeps control of taxpayer funds and delivers investments and benefits for all Americans,” said Secretary of Commerce Howard Lutnick.
🌐 Analysis: Natcast’s leadership included industry veterans and former government advisors such as CEO Deirdre Hanford, who previously served on the Commerce Department’s Industrial Advisory Committee during the Biden Administration. During its brief tenure, Natcast was planning initiatives to build U.S. capacity in advanced packaging, prototyping, and workforce development.
The move also comes just days after the U.S. government took a direct $8.9 billion ownership stake in Intel, underscoring a broader Trump Administration strategy of direct federal control over semiconductor policy and investments. This contrasts sharply with the Biden-era reliance on direct grants. Together, these steps signal a pivot toward tighter government oversight in the U.S. semiconductor industrial base.
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