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The US Commerce Department, led by Secretary Howard Lutnick, is considering taking equity stakes in computer chip manufacturers that receive funding under the CHIPS Act to build factories in the country. This potential move would mark a significant shift in the US government’s approach to supporting the semiconductor industry.
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Lutnick is exploring equity stakes in companies such as Micron, Taiwan Semiconductor Manufacturing Co (TSMC), and Samsung, in exchange for CHIPS Act funding. The White House press secretary, Karoline Leavitt, confirmed that Lutnick is working on a deal with Intel to take a 10% government stake, stating, “The president wants to put America’s needs first, both from a national security and economic perspective, and it’s a creative idea that has never been done before
The CHIPS Act provides $52.7 billion in funding for research and grants for building chip plants in the US. The Commerce Department has already finalised subsidies of $4.75 billion for Samsung, $6.2 billion for Micron, and $6.6 billion for TSMC to produce semiconductors in the US. Lutnick has been pushing the equity idea, and sources indicate that Trump likes the concept.
This development comes as the US government seeks to boost its semiconductor industry and reduce reliance on foreign suppliers. The potential equity stakes would give the government significant influence over these companies, raising questions about the role of government in business
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Jonathan Nwokpor
