The Trump administration is currently accelerating the streamlining plan for federal agencies, with a focus on the National Institute of Standards and Technology (NIST). This agency is responsible for establishing AI technology standards and providing subsidies to the semiconductor industry. However, reports indicate that approximately 500 probationary employees have recently received “verbal layoff notices,” which will severely impact the Biden administration’s AI and chip initiatives.
NIST Faces Major Layoffs, Semiconductor and AI R&D Operations Affected
According to Bloomberg, NIST, which is under the U.S. Department of Commerce, has been responsible for executing multiple key programs during the Biden administration, including:
– $39 billion in semiconductor manufacturing subsidies.
– $11 billion in chip R&D investments.
– AI technology standards and safety testing.
However, since the Trump administration took office, the policy direction has shifted dramatically. The previously risk management-centered AI regulatory policy has been abolished, replaced by a focus on promoting AI innovation. This has made NIST a primary target for layoffs as it implements Biden administration policies. According to internal sources, the agency:
– Faces the potential layoff of nearly 60% of its office staff responsible for semiconductor manufacturing subsidies.
– Approximately two-thirds of personnel involved in chip R&D programs are at risk of being cut.
– The U.S. Artificial Intelligence Safety Institute may also be affected.
New Commerce Secretary Lutnick Takes Office, AI and Chip Policies to be Restructured
This wave of layoffs coincides with the recent appointment of new Commerce Secretary Howard Lutnick. During a congressional hearing last month, Lutnick clearly stated that he would re-evaluate the Biden administration’s AI and chip programs. It is currently confirmed that:
– The AI regulatory policies from the Biden era have been abolished, and future efforts will shift towards encouraging AI industry development.
– The semiconductor subsidies and R&D programs will be reassessed, and further adjustments to funding allocations are not ruled out.
– The government is continuing to scale down, with not just NIST, but other federal agencies’ probationary employees also facing layoffs.
Industry Concerns Over Talent Drain, Legal Challenges Loom for White House
This wave of layoffs has drawn significant attention, particularly as high-tech talent at NIST in the AI and semiconductor fields will be affected. Industry concerns include:
– A potential mass exodus of talent from federal research institutions, leading to a gap in technological R&D.
– Government cuts to subsidies affecting the competitiveness of the U.S. semiconductor industry.
– The executive orders from the Trump administration may provoke legal challenges, with several lawsuits already emerging.
NIST has yet to respond to media inquiries; however, it is certain that this government streamlining plan will continue to unfold, leaving the future of U.S. AI and semiconductor policies filled with uncertainties.
(Trump Removes Innovation Barriers! Former CFTC ** Giancarlo: CBDC May Threaten Bitcoin, All Assets to Be On-Chain by 2035)
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and their prices can be extremely volatile, which may result in the loss of your entire principal. Please assess the risks carefully.