U.S. weighs equity stakes in chipmakers tied to CHIPS Act funding - report

[Commerce Secretary Lutnick Discusses China Negotiations During TV Interview]

U.S. Commerce Secretary Howard Lutnick is weighing whether the federal government should take equity stakes in semiconductor companies receiving CHIPS Act funding to build factories in the United States, Reuters reported, citing two people familiar with the matter.

The discussions expand on a proposal for the government to acquire a stake in Intel (INTC [https://seekingalpha.com/symbol/INTC]) in exchange for cash grants, according to a White House official and one of the sources. Lutnick is exploring whether similar arrangements could apply to companies including Micron Technology (NASDAQ:MU [https://seekingalpha.com/symbol/MU]), Taiwan Semiconductor Manufacturing (NYSE:TSM [https://seekingalpha.com/symbol/TSM]) and Samsung Electronics (OTCPK:SSNLF [https://seekingalpha.com/symbol/SSNLF]).

Lutnick has been pushing the equity idea, which President Donald Trump supports, the sources said. Treasury Secretary Scott Bessent is also involved in the discussions, though Lutnick is leading the process.

Much of the $52.7 billion in CHIPS Act funding has yet to be disbursed. Micron is the largest U.S. recipient of CHIPS funding after Intel (INTC [https://seekingalpha.com/symbol/INTC]).

White House press secretary Karoline Leavitt confirmed on Tuesday that Lutnick is negotiating with Intel on a deal that would give the government a 10% stake. “The president wants to put America’s needs first, both from a national security and economic perspective, and it’s a creative idea that has never been done before,” she told reporters.

Lutnick said earlier on CNBC that Washington does not intend to direct Intel’s operations, but any investment would mark an unprecedented shift in U.S. influence over major corporations. The government has previously taken corporate stakes only in times of economic upheaval.

The Commerce Department finalized subsidies late last year of $4.75 billion for Samsung, $6.2 billion for Micron, and $6.6 billion for TSMC to expand semiconductor production in the U.S.

In June, Lutnick said the department was re-negotiating some grants awarded under former President Joe Biden, calling them “overly generous,” and noted that Micron had offered to increase its planned investments.

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