US Explores Equity Investments in Semiconductor Companies for CHIPS Act Funding Grants
US Commerce Secretary Howard Lutnick is exploring the possibility of the government acquiring equity shares in Intel and other semiconductor firms in return for grants provided by the CHIPS Act aimed at encouraging factory construction nationwide, according to reports.
To boost US manufacturing - a significant part of Trump's agenda - Lutnick mentioned that the US government seeks an equity stake in Intel in return for cash grants sanctioned by the previous administration of President Joe Biden.
Lutnick now aims to extend that strategy to additional firms, according to a White House representative and an individual knowledgeable about the circumstances.
The Trump administration has recently engaged in unusual agreements with U.S. firms, such as permitting AI chip leader Nvidia to sell its H20 chips to China in return for the U.S. government obtaining 15 percent of those revenues. The Pentagon is expected to become the biggest stakeholder in a small mining firm to increase production of rare earth magnets.
Critics are concerned about the government's involvement in corporate issues, claiming that President Donald Trump's actions establish new forms of corporate risk and that a poor decision could adversely impact taxpayer money.
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A significant portion of the financing from the CHIPS Act has not yet been allocated to firms like Micron, Taiwan Semiconductor Manufacturing Co, Samsung, and Intel.
TSMC and Intel did not provide any comment. Micron, Samsung, and the White House did not reply to inquiries regarding Lutnick's potential interest in acquiring additional stakes.
During a session with legislators in Taipei, when asked if the U.S. government could invest in TSMC, Taiwan's Economy Minister Kuo Jyh-huei stated that his ministry would discuss this matter with the company, emphasizing that it is private and not a government-owned enterprise.
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"We will also discuss with the National Development Council, as it is a shareholder of TSMC. We will thoroughly understand the underlying meaning of the U.S. Commerce Secretary's remarks, but this will require some time for discussion and assessment," Kuosays.