Trump administration eyeing equity in Intel; TSMC & Micron likely exempt — CHIPS Act updates
Last week reports surfaced that the Trump administration is considering taking an equity stake in Intel in exchange for federal CHIPS Act grants — a move that would mark a notable shift in how the U.S. funds domestic semiconductor capacity.
Key points
- The administration reportedly discussed taking an equity stake in Intel tied to the $10.86B in CHIPS grants Intel received.
- Sources indicate companies like TSMC and Micron that recently expanded U.S. investments (TSMC’s Arizona fab; Micron’s facilities in Idaho, New York and Virginia) won’t be asked to give up equity.
- WSJ/other reports say TSMC executives even held preliminary discussions about returning subsidies if the government demanded a shareholder role.
- Legal experts note attempts to take equity could face contractual and legal challenges; existing CHIPS agreements include revenue-sharing if profits exceed certain thresholds.
- There are also reports the government may redirect up to ~$2B in CHIPS funding toward critical-mineral projects to reduce reliance on foreign suppliers — though details and final plans may evolve.
Context & reactions
Commerce Secretary Howard Lutnick’s remarks drew attention to how the administration views CHIPS funding and whether capital should be recouped via equity stakes. Industry players are reportedly assessing options, including whether to accept funds under proposed terms or reconsider U.S. projects.
Sources and further reading
- OPB (via CNBC): Trump seeks nonvoting equity stake in Intel for CHIPS Act funding
- ITIF analysis: Risks of the administration taking equity in semiconductor firms
- Hindustan Times: Reporting on how decisions might be made over CHIPS recipients and equity
Note: Original reporting on this topic appeared on Engadget; links to the Engadget RSS source have been omitted per instructions. This post summarizes reporting from multiple outlets and may be updated as new information becomes available.