The Trump administration is contemplating acquiring equity positions in select semiconductor companies receiving funds from the 2022 CHIPS Act, excluding industry giants such as Taiwan Semiconductor Manufacturing Company (TSMC) and Micron Technology, a White House official has confirmed to Reuters.
Unlike smaller firms, major players planning extensive U.S. investments, including TSMC and Micron, will not see government equity acquisition under current discussions, the official noted, aligning with a report by The Wall Street Journal.
U.S. Commerce Secretary Howard Lutnick indicated that the government is considering taking a 10% stake in struggling chipmaker Intel, expressing interest in obtaining additional stakes in other beneficiaries of the grant.
The administration will only offer support in exchange for the company stake to represent the American taxpayer, Lutnick remarked on CNBC, signaling a shift from previous administrations that offered unconditional financial aid to firms like Intel and TSMC.
During a White House event in March with President Trump, TSMC—known for its affiliations with tech giants Nvidia and Apple—announced a $100 billion new U.S. investment initiative, supplementing an existing $65 billion designated for manufacturing facilities in Arizona. Similarly, Micron expanded its U.S. investment plans in June.
The Wall Street Journal reported that TSMC executives have discussed the potential return of subsidies if the government seeks to become a shareholder. Both the White House and TSMC refrained from commenting, while Micron did not immediately respond to requests for remarks.
The U.S. Commerce Department, responsible for managing the $52.7 billion CHIPS and Science Act, cemented $6.6 billion in subsidies late last year to support TSMC’s semiconductor production in the United States, yet the department provided no immediate commentary. Besides Intel, recipients of substantial CHIPS Act support also include TSMC, Micron, and Samsung, with significant funds still pending disbursement.
President Trump had previously expressed intentions to abolish the CHIPS Act program. Historically, the U.S. government has intervened by acquiring stakes in companies during economic downturns to bolster financial stability and confidence.
