Trump considers potential acquisition of U.S. government shares in chip companies that received CHIPS Act subsidies, according to reports
The U.S. government is set to acquire a 10% equity stake in Intel, the biggest U.S. recipient of CHIPS Act cash, as part of its strategy to bolster the domestic semiconductor industry. However, the government has officially stated that it is not requesting equity stakes from Taiwan Semiconductor Manufacturing Company (TSMC) or Micron in exchange for CHIPS Act funding.
According to reports, U.S. Commerce Secretary Howard Lutnick is considering acquiring a 10% equity stake in Intel, which received approximately $8 billion under the CHIPS Act. This move is aimed at prioritizing America's needs from a national security and economic perspective.
On the other hand, TSMC and Micron are expected to be exempt from such a requirement due to their increased investments in the U.S. TSMC, the world's largest contract chip maker, has signalled resistance to the idea, considering the possibility of returning subsidies if forced to provide equity stakes. South Korea has also denied any U.S. plans to acquire a stake in Samsung, another major player in the semiconductor industry.
The White House emphasizes that equity stakes will be targeted primarily at companies that have not increased their U.S. investments beyond their original commitments. The shift in U.S. semiconductor funding oversight, with the Commerce Department taking control of key research funds, underscores a more assertive stance in managing technology investments.
In June, Lutnick stated that the department was re-negotiating some of former President Joe Biden's grants to semiconductor firms, and mentioned that Micron offered to increase its spending on chip plants in the U.S. The White House press secretary, Karoline Leavitt, confirmed that Lutnick is working on a deal with Intel to take a 10% government stake. Treasury Secretary Scott Bessent is also involved in the CHIPS Act discussions.
The plan under consideration includes receiving an equity stake in companies such as Micron, TSMC, Samsung, and Intel. If executed, this deal would mark a new era of U.S. influence on big companies, reflecting a more proactive approach to securing America's technological future.
| Company | Equity Stake Demand Status | |----------|----------------------------------------------------------| | Intel | U.S. government confirmed to seek 10% stake for CHIPS funds | | TSMC | No equity stake requested; company may return subsidies if pressured | | Micron | No equity stake requested due to increased U.S. investment | | Samsung | South Korea denies any U.S. plans to acquire stake |
Micron, Samsung, and the White House did not respond to requests for comment. TSMC declined to comment on the matter.
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