US Commerce Secretary Howard Lutnick is exploring the possibility of the government taking an equity stake in chipmakers like Intel and TSMC in exchange for grants under the CHIPS Act, a plan aimed at reviving US manufacturing. The proposal, which has been met with skepticism from some experts, would give the US government a non-voting stake in these companies.
Lutnick wants to expand this plan to other companies, including Micron and Samsung, according to White House officials. The idea was first proposed by former President Joe Biden’s administration, but it gained momentum under the Trump presidency.
The US government plans to receive 15% of sales from AI chip giant Nvidia’s H20 chips sold in China, as part of an unusual deal made with the company. Treasury Secretary Scott Bessent is also involved in the CHIPS Act discussions.
Some experts argue that foreign companies like Samsung need “predictability” for their US investments, while others express concerns about the impact on chipmakers’ operations and control. A Taiwanese official said his ministry would consult with TSMC, which was private and not a state-owned enterprise.
The US government wants a return on its investment in exchange for grants, as Lutnick said. However, some experts question whether this approach will be effective in boosting US manufacturing.
Source: https://www.reuters.com/business/media-telecom/us-examines-equity-stake-chip-makers-chips-act-cash-grants-sources-say-2025-08-20