U.S. Commerce Secretary Howard Lutnick is examining whether Washington should take minority equity stakes in major semiconductor producers that receive money from the $52.7 billion CHIPS and Science Act, according to people familiar with the discussions. The idea, first broached in negotiations with Intel, would require companies to give the government shares in exchange for federally funded factory subsidies. Lutnick is now looking at extending the model beyond Intel to Micron Technology, Taiwan Semiconductor Manufacturing Co. and Samsung Electronics, the sources said. The White House has already confirmed that talks with Intel envisage a 10 percent federal stake, calling the approach a way to align corporate incentives with national security goals. Reuters reported that TSMC declined to comment, while Micron, Samsung and the Commerce Department have not publicly addressed the plan. Much of the CHIPS Act money has yet to be distributed; the Commerce Department last year outlined grants of roughly $6.6 billion for TSMC, $6.2 billion for Micron and $4.75 billion for Samsung. Treasury Secretary Scott Bessent is participating in the deliberations, but Lutnick is leading the effort, which has the backing of President Donald Trump. Any move to acquire stakes would mark an unprecedented level of federal influence over the sector and would likely require additional congressional and regulatory review.
Sources: US Commerce Secretary Howard Lutnick is exploring government equity stakes in return for CHIPS Act funding from Micron, TSMC, Samsung, and others (Reuters) https://t.co/IrJ0yNG2gS https://t.co/KxGhUsIaFb https://t.co/ZOzeer2dpR
U.S. Commerce Secretary Howard Lutnick is looking into the federal government taking equity stakes in computer chip manufacturers that receive CHIPS Act funding to build factories in the country. https://t.co/8tSt93GkwA
U.S. Commerce Secretary Howard Lutnick is looking into the federal government taking equity stakes in computer chip manufacturers that receive CHIPS Act funding to build factories in the country, two sources said. https://t.co/8pWTKWI3lr