CHIPS Act funding could come with US government stakes
The US government is examining whether to take ownership stakes in major semiconductor companies in exchange for federal CHIPS Act grants, Reuters reports, citing two sources familiar with the talks.
On CNBC, Commerce Secretary Howard Lutnick said the US wants a return on its support: “We’ll get equity in return for that ... instead of just giving grants away,” he said.
As part of a plan to reinvigorate US manufacturing, Lutnick stated on Tuesday that the US government wants a stake in Intel in exchange for CHIPS Act funds approved by former President Joe Biden's administration.
White House Press Secretary Karoline Leavitt later confirmed that Lutnick is negotiating with Intel on a potential deal that would see the government acquire a 10% equity stake in exchange for federal funding.
According to Reuters, officials are also exploring whether similar arrangements could apply to other beneficiaries of the USD 52.7 billion CHIPS and Science Act, including TSMC, Micron, and Samsung.
"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," Karoline Leavitt told reporters.
TSMC and Intel declined to comment on the information, while Micron, Samsung and the White House did not reply to Reuters’ requests.