- Trump administration may take equity stakes in some CHIPS Act recipients but excludes major firms like TSMC and Micron.
- Commerce Secretary Lutnick suggests a 10% stake in Intel is under consideration.
- TSMC may return subsidies if forced to give the U.S. government a share.
The Trump administration is exploring the possibility of taking ownership stakes in companies receiving funds through the 2022 CHIPS Act, but it has no plans to seek equity in larger firms that are significantly increasing their investments in the U.S., such as semiconductor giants TSMC and Micron, a White House official confirmed to reporters.
EKO HOT BLOG made this confirmation following a report indicating that the administration will not pursue shares in companies like Micron and TSMC, even as these firms boost their U.S. semiconductor manufacturing efforts.
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On Tuesday, U.S. Commerce Secretary Howard Lutnick stated that the government is still considering taking a 10% stake in struggling chipmaker Intel and hinted at plans to acquire stakes in other recipients of CHIPS Act grants.
“If we’re providing funds, the American taxpayer deserves a share of the benefits.” Lutnick added that while the Biden administration had been giving “money for free” to companies like Intel and TSMC, the Trump administration shifted to demanding equity stakes in return for funding.
In a White House event in March with then-President Donald Trump, TSMC whose key clients include Nvidia and Apple revealed plans to invest $100 billion in the U.S., alongside $65 billion allocated for three manufacturing plants in Arizona. Micron also increased its U.S. investments in June.
The Wall Street Journal reported that TSMC executives have discussed potentially returning their government subsidies if asked to allow the U.S. government to become shareholders. Both the White House and TSMC declined to comment, while Micron did not immediately respond to requests for comment.
The U.S. Commerce Department, which administers the $52.7 billion CHIPS and Science Act, approved $6.6 billion in subsidies late last year to TSMC for semiconductor production in the U.S. The department did not comment on the equity stake plans.
Other major recipients of the CHIPS Act funds include Intel, Micron, TSMC, and Samsung, though most of the funds have yet to be released.
Previously, Trump had expressed opposition to the CHIPS Act program.
Historically, the U.S. government has taken equity stakes in companies during economic crises to provide financial aid and bolster market confidence.
