U.S. Commerce Secretary Howard Lutnick said Tuesday that Washington is negotiating to take an equity stake in Intel Corp. in exchange for nearly $7.9 billion in CHIPS and Science Act subsidies that were approved during the Biden administration. Lutnick told CNBC the government expects "equity for our money," characterizing the proposal as a conversion of grants into non-voting shares that would not give the state a say in day-to-day operations. Bloomberg and other outlets have reported the discussions center on roughly a 10% holding. Treasury Secretary Scott Bessent said the prospective investment aims to stabilize the struggling chipmaker and expand domestic semiconductor capacity, rather than compel U.S. buyers to source chips from Intel. Lutnick added that similar arrangements could be sought with other recipients of CHIPS funding as the Trump administration seeks returns for taxpayers. Intel declined to comment, but its stock rose about 7% after Lutnick’s remarks. The announcement comes a day after Japan’s SoftBank said it would buy $2 billion of Intel shares, becoming one of the company’s largest investors. Intel recorded a $18.8 billion loss in 2024 and has delayed the start-up of its flagship Ohio fabrication complex to 2030, underscoring its need for fresh capital. If completed, the deal would represent one of the biggest U.S. government ownership positions in a private technology firm since the 2008 financial crisis and marks a policy shift from outright subsidies to equity participation as Washington tries to secure a bigger share of the global chip supply chain.