Trump Administration Considers Equity Stakes in Intel, Semiconductor Firms

The Trump administration is considering taking equity stakes in semiconductor companies receiving subsidies under the 2022 CHIPS Act, particularly targeting those not increasing their U.S. investment commitments. However, the administration has no plans to seek shares in larger firms like Taiwan Semiconductor Manufacturing Company (TSMC) and Micron, which are expanding their investments in the U.S. Commerce Secretary Howard Lutnick confirmed ongoing discussions about potentially acquiring a 10% stake in Intel, a company currently facing challenges. TSMC, which announced a $100 billion investment in the U.S. and is a significant CHIPS Act subsidy recipient, has reportedly discussed the possibility of returning subsidies if asked to provide equity. The CHIPS Act allocates over $52 billion to support domestic semiconductor manufacturing, biotechnology, and clean-energy innovation. The government’s move to take equity stakes aims to ensure favorable terms for taxpayers while encouraging companies to increase their U.S. investments without setting a risky precedent for Wall Street.