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U.S. Commerce Secretary Howard Lutnick said the Biden-era CHIPS Act was “mishandled,” arguing that semiconductor subsidies have not delivered the intended strategic return. Speaking in a televised interview, Lutnick said Washington must focus future industrial policy on areas where the United States is “adding fundamental value” rather than engaging in what he called corporate giveaways. Lutnick signaled that the Trump administration could take equity stakes in companies that request federal support, stressing that any decision would be negotiated between chief executives and President Donald Trump. He noted that Lockheed Martin generates about 97% of its revenue from U.S. government contracts and cited both Lockheed and Boeing as examples of firms that benefit substantially from taxpayer financing. The secretary described a “monstrous discussion” now under way about defense contractors and the financing of munitions purchases, saying additional talks are needed to decide how the government underwrites the sector. He also suggested that patents arising from federally funded university research should leave the government with a share of the intellectual property. Lutnick said the administration plans to establish a National and Economic Security Fund to align investment decisions with strategic priorities. Pointing to subsidized auto industries in Japan and Europe, he argued that the United States must ensure it is “in the game” by using targeted tools to secure both national and economic security.
