Equity Stakes in Chipmakers: A Strategic Shift by U.S. Commerce

U.S. Commerce Secretary Howard Lutnick has proposed a novel approach to U.S. manufacturing: the government taking equity stakes in Intel and other chipmakers in exchange for grants under the CHIPS Act.

This move aims to stimulate factory-building in America and aligns with a major agenda from President Trump. Critics have voiced concerns about potential risks to taxpayer funds, but Lutnick argues that this strategy ensures a tangible return on investment, unlike the previous administration's policies.

As discussions progress with industry giants and senior government officials, the proposal's innovative nature continues to spark debate and anticipation across the sectors involved.

(With inputs from agencies.)