The new semiconductor campaign in the United States has gained new political momentum and helped the industry recover, particularly with the Trump administration’s proposal to link subsidies to equity stakes in certain strategic companies. This move, orchestrated by Commerce Secretary Howard Lutnick, places companies like Intel at the center of the debate over the extent to which government intervention can strengthen or undermine the sector’s competitiveness in the long term.
Trump bets on state participation to strengthen industry
U.S. Commerce Secretary Howard Lutnick is looking into the government taking equity stakes in Intel INTC.Oand other chipmakers in exchange for grants under the CHIPS Act, which aims to spur factory-building in the U.S., two sources said. As part of a plan to revive U.S. manufacturing – a key Trump agenda – Lutnick said earlier on Tuesday the U.S. government wants an equity stake in Intel in exchange for cash grants approved by the administration of former President Joe Biden.
Now Lutnick wants to expand that plan to other companies, according to a White House official and a person familiar with the situation. The Trump administration has recently made unusual deals with U.S. companies, including allowing AI chip giant Nvidia NVDA.O to sell its H20 chips to China in exchange for the U.S. government receiving 15% of those sales. The Pentagon is slated to become the largest shareholder in a small mining company to boost output of rare earth magnets.
The government’s intervention in corporate matters has worried critics who say President Donald Trump’s actions create new categories of corporate risk and that a bad bet could mean a hit to taxpayer funds. Much of the funding under the CHIPS Act has not yet been dispersed for companies such as Micron MU.O, Taiwan Semiconductor Manufacturing Co 2330.TW, Samsung 005930.KS and Intel.
The role of foreign companies and caution regarding the US plan
TSMC and Intel declined to comment. Micron, Samsung and the White House did not respond to requests for comment on whether Lutnick is considering more stakes.ย The two sources told Reuters on Tuesday that Treasury Secretary Scott Bessent is also involved in the CHIPS Act discussions, but that Lutnick is driving the process. The Commerce Department oversees the $52.7 billion CHIPS Act money.
South Korean presidential advisor Kim Yong-beom said neither the government nor the potentially affected companies have heard about such a plan. He added that foreign companies like Samsung needed “predictability” for their U.S. investments.ย A Korean chip industry official, meanwhile, said it would be hard for chipmakers to accept U.S. government equity stakes, and some may either decide not to invest or delay investments unless Washington provides incentives like increasing funding.
Discussions broaden the geopolitical scope of negotiations
Taking lawmaker questions in Taipei on Wednesday and asked whether the U.S. government could take a stake in TSMC, Taiwan Economy Minister Kuo Jyh-huei said his ministry would consult with the company, which he pointed out was private and not a state-owned enterprise.
The possibility of extending the policy to foreign manufacturers like TSMC raises new concerns about corporate sovereignty and strategic alignment. For Asia, the US proposal represents an opportunity for integration, with new production chains; there is criticism regarding the risk of greater political dependence on the US. This scenario reinforces the technological dispute, which already goes beyond market limits and could perhaps even be seen as a matter of national security.
A New American Industrial Policy
Negotiations between Intel and other chipmakers could be decisive and measure the effectiveness of the US strategy. National security, competitiveness, and attracting foreign investment must be the new focus. The Trump administration is pursuing a bold and risky path, but one that could consolidate American technological leadership. We can await the outcome of this situation and hope that it will further strengthen its global position.
GCN.com/Reuters