The Nasdaq dropped nearly 290 points on Tuesday as tech stocks plummeted due to a report that the Trump administration may seek equity stakes in companies receiving federal grants under the Biden-era CHIPS Act. Commerce Secretary Howard Lutnick is considering a plan where the US will gain equity stakes in chipmakers in exchange for grants.
The proposed plan would allow the US to acquire 10% equity in Intel, valued at $10.4 billion, making it the chipmaker’s largest shareholder. Other companies that may receive CHIPS Act funds and have their equity sought by the US include Micron, TSMC, and Samsung.
This move is a rare instance of the US acquiring equity in a company, but not unprecedented. The US has previously taken equity in banks and automakers during times of financial instability, such as during the 2008 financial crisis.
President Donald Trump has repeatedly criticized the CHIPS Act, calling it “horrible” and saying that the money given to companies doesn’t translate to any real action. Commerce Secretary Lutnick attributed Trump’s stance to a desire for the US government to have a piece of the action when giving grants to chipmakers.
Source: https://www.forbes.com/sites/siladityaray/2025/08/20/nvidia-and-intel-lead-tech-stock-drop-as-white-house-reportedly-seeks-equity-for-chips-grants