U.S. Government Eyes Equity Stakes in Major Chip Companies

U.S. Commerce Secretary Howard Lutnick is exploring the possibility of the government acquiring equity stakes in Intel and other chip companies in exchange for grants provided under the CHIPS Act, two sources disclosed. This initiative aligns with efforts to revive American manufacturing, a significant agenda during the Trump administration.

According to White House officials and insiders, the plan may extend to other corporations, with similar arrangements that include AI chip giant Nvidia selling chips to China in exchange for U.S. stakes. Critics fear these government interventions might increase corporate risks, impacting taxpayer funds adversely.

While key players like Intel and TSMC have yet to comment, discussions are ongoing, with Treasury Secretary Scott Bessent involved alongside Commerce Secretary Lutnick. The move is described as a bid to secure a return on investment for the U.S., alongside national and economic security interests.

(With inputs from agencies.)