US Seeks Nonvoting Equity Stake in Intel for Chip Grants

Commerce Secretary Howard Lutnick confirmed that the U.S. government is in talks to convert grant funding given to Intel under the Chips and Science Act into an equity stake, potentially making the government Intel’s largest shareholder without voting or governance rights. This plan, supported by President Donald Trump, aims to ensure the American taxpayer receives a return on investment rather than just subsidies. Intel’s grants under the act total $10.9 billion, supporting its plans to build a semiconductor hub in Ohio amid competitive pressures from rivals like Nvidia and TSMC. Following the news, Intel’s stock surged, reflecting investor approval. The Trump administration’s approach includes a mix of incentives and pressure on Intel’s leadership to boost domestic chip manufacturing and reduce reliance on foreign supply chains. Intel has expressed gratitude for the administration’s focus on strengthening U.S. technology and manufacturing leadership.