The United States acted unilaterally, and its allies are not yet 'on board,' said the Semiconductor Industry Association.
An FCC watchdog report said some service providers were signing up multiple people on one person's information for ACP benefits.
Bill aims to strengthen American self-reliance in semiconductor chip production and international competition.
The CHIPS Act had been pushed by officials as a key bill to increase America's self sufficiency on chip manufacturing.
How COVID and supply chain woes are driving $52 billion in incentives for domestic production of semiconductor chips.
Technology companies, including Intel, are lobbying for legislation incentivizing domestic production of chips crucial to many sectors.
Separate legislation that fully funds the Chips Act is awaiting House votes.