The Trump administration is negotiating with Intel Corp. to convert as much as $10.9 billion in subsidies awarded under the CHIPS and Science Act into roughly a 10% equity stake, Commerce Secretary Howard Lutnick said in a CNBC interview. The shares would give Washington one of the largest positions in the nation’s biggest chipmaker and mark a rare instance of the U.S. government taking ownership in a major technology company. Lutnick added that the White House wants “equity for our money” and may seek similar arrangements with other grant recipients, including Micron Technology, Taiwan Semiconductor Manufacturing Co. and Samsung Electronics. Officials said any stake would be non-voting and would not involve day-to-day operational control of the companies. Senator Bernie Sanders endorsed the plan, arguing that taxpayers deserve a “reasonable return” when federal funds boost private profits. Free-market advocates and some industry analysts warned the move could distort competition and blur the lines between the public and private sectors. Semiconductor stocks fell after reports of the proposed deal. Intel slipped 1.1% to $25.02 in early New York trading, while AMD dropped 1.4% and Micron declined 5.2%. In Asia, TSMC’s Taipei-listed shares fell 4.2% and SK Hynix lost 2.9%. Intel, which posted a $19 billion loss last year, is counting on government support as it races to expand domestic manufacturing and narrow the gap with overseas rivals.