Curated News
By: NewsRamp Editorial Staff
August 24, 2025
Trump Admin Seeks Equity in Intel, Spares TSMC and Micron in CHIPS Funding
TLDR
- The Trump administration seeks equity stakes in Intel for taxpayer returns while avoiding TSMC and Micron to maintain their investment commitments.
- The government may take up to 10% equity in chipmakers receiving CHIPS Act funding through a structured approach tied to federal support.
- This strategy aims to boost domestic chip production, securing supply chains and creating jobs for a more resilient technological future.
- TSMC pledged $100 billion in new US investments while shares rose 1.3% as the White House backed away from equity stakes.
Impact - Why it Matters
This policy shift could fundamentally alter how the U.S. government supports semiconductor manufacturing, potentially creating taxpayer returns but risking foreign investment withdrawal. For consumers, it affects the stability of chip supplies for everything from smartphones to cars, while investors must navigate new government ownership dynamics in critical tech stocks. The approach may either strengthen domestic chip sovereignty or discourage the very foreign investment needed to reduce reliance on Asian manufacturing.
Summary
The Trump administration is pursuing equity stakes in select U.S. chipmakers receiving CHIPS Act funding, with Commerce Secretary Howard Lutnick specifically targeting Intel Corp. for potential government ownership of up to 10%. This controversial approach marks a significant departure from the Biden administration's grant-based subsidy model, with Lutnick arguing that taxpayers deserve "a piece of the action" when companies benefit from federal support.
Notably, the White House is steering clear of demanding equity from Taiwan Semiconductor Manufacturing Co. (TSMC) and Micron Technology Inc., both of which have made massive U.S. investment commitments. TSMC, a critical supplier to Apple and Nvidia, has pledged $100 billion in new U.S. investments this spring atop $65 billion already committed to its Arizona facilities, while Micron expanded its domestic manufacturing plans in June. According to sources, TSMC executives have privately discussed returning subsidies if forced to cede equity stakes.
The Commerce Department previously awarded substantial funding through the $52.7 billion CHIPS program, including $6.6 billion to TSMC, $6.2 billion to Micron, and $4.75 billion to Samsung to boost domestic chip production. Market reactions were mixed, with TSMC shares rising 1.3%, Micron slipping 0.4%, and Intel adding 0.9% following the news, as reported by citybiz.
Source Statement
This curated news summary relied on content disributed by citybiz. Read the original source here, Trump Admin Seeks Equity in Intel, Spares TSMC and Micron in CHIPS Funding
