US Authorities Eye Stakes in AI Chipmakers

US Commerce Secretary considers acquiring stakes in Intel for grants.

US Commerce Secretary Howard Lutnick is considering the possibility of the government acquiring stakes in Intel and other chip manufacturers in exchange for financial grants under the CHIPS Act, according to Reuters, citing sources.

The CHIPS Act, enacted in August 2022 during Joe Biden’s administration, aims to support chip manufacturing and scientific development in the country. The initiative allocates $52.7 billion to stimulate growth in the semiconductor industry:

• $39 billion for subsidies and grants to build and expand factories;
• $11 billion for scientific research and development;
• the remaining funds for tax incentives for chip developers.

A significant portion of the CHIPS Act funding has yet to be distributed among companies such as Micron, TSMC, Samsung, and Intel.

Previously, the administration of then-President Donald Trump struck several unusual deals with American firms. Nvidia and AMD were allowed to sell downgraded AI chips to China in exchange for 15% of the revenue from these deals.

Such government intervention in corporate affairs has raised concerns among critics. They fear the creation of new categories of corporate risks and poor decisions that could result in losses for taxpayers.

When asked about the US government acquiring a stake in TSMC, Taiwan’s Minister of Economic Affairs, Kuo Tzu-hui, stated that his department would consult with the company. He emphasized that it is private, not state-owned.

“We will also discuss this with the National Development Council, as it is a shareholder of TSMC. We will try to thoroughly understand the essence of the US Commerce Secretary’s statements, but it will take time for discussion and evaluation,” he said.

According to Reuters, White House Press Secretary Caroline Levitt allegedly confirmed that Lutnick wants to acquire 10% of Intel’s shares for the state. However, there is no direct confirmation of this.

“The President intends to put America’s interests first — both in terms of national security and the economy. This is a creative idea that has never been implemented before,” she told reporters.

The proposed stake in companies would be non-voting — the government would not manage the business but would receive income.

“The Biden administration was literally giving money to Intel and TSMC for nothing, and Donald Trump said, ‘Hey, we want shares for the money. If we give you money, we want a stake in the business for American taxpayers,’” Lutnick said.

SoftBank Investments and Intel’s Challenges

His statement came a day after SoftBank Group agreed to invest $2 billion in Intel.

The Japanese group will pay $23 per share. It has sought to become a key player in artificial intelligence for several years but has mostly remained on the sidelines.

Recently, the company became involved in the Stargate project and invested in OpenAI, valuing the latter at $300 billion.

In August 2024, Intel announced the layoff of 15% of its workforce, or about 15,000 employees, amid lagging in the AI race. The decision was part of a plan to cut costs by $10 billion in 2025, linked to poor financial performance.

In September, Intel announced a series of changes aimed at improving efficiency, competitiveness, and profitability.