The US government is demanding an equity stake in chipmaker Intel in exchange for billions of dollars in funding from the CHIPS Act, according to Commerce Secretary Howard Lutnick. The potential deal would convert grants into equity, with no governance rights attached.
Lutnick stated that the US should receive an equity stake for its money, saying “We’ll deliver the money, which was already committed under the Biden administration. We’ll get equity in return for it.” This move comes as Intel shares have risen nearly 7% on recent reports of a possible deal with the Trump administration.
The White House is reportedly discussing a 10% stake in Intel, making it the US government’s largest shareholder. However, Lutnick clarified that any arrangement would not provide voting or governance rights to the government. Instead, it would be a non-voting equity stake.
Lutnick also hinted that President Trump may pursue similar deals with other CHIPS recipients, citing the need for the US to reduce its reliance on foreign chipmakers like Samsung and TSMC. Intel has been investing heavily in its “Silicon Heartland” factory complex in Ohio, which is expected to produce advanced chips.
The deal comes after the Biden administration’s grant to Intel was criticized as “free money.” Lutnick said that Trump’s approach is a change of pace, seeking equity for the funding provided. The US government has committed billions of dollars under the CHIPS and Science Act, with Intel’s Ohio factory complex being one of the most public projects funded by the law.
Source: https://www.cnbc.com/2025/08/19/lutnick-intel-stock-chips-trump.html