U.S. Eyes Equity Stakes in Chip Makers for CHIPS Act Funding

In a groundbreaking move, U.S. Commerce Secretary Howard Lutnick is exploring the possibility of the federal government acquiring equity stakes in computer chip manufacturers that receive CHIPS Act funding. This initiative, which is unprecedented, is aimed at strengthening national security and economic stability.

The plan is being refined by Lutnick, who is focusing on securing a government stake in companies such as Intel, Micron, and Taiwan Semiconductor Manufacturing Co. The White House has confirmed the ongoing discussions, highlighting the government's creative approach to bolster the economy through equity acquisition in these significant firms.

Much of the funding under the CHIPS Act, valued at $52.7 billion, remains to be allocated. Lutnick's move is seen as an effort to enhance U.S. influence over the key players in the semiconductor industry, ensuring that companies keep their commitments to domestic investment. Treasury Secretary Scott Bessent is also involved, but Lutnick is leading the initiative, with support from former president Trump.