The Trump administration is shaking up semiconductor policy by moving to convert CHIPS Act subsidies into direct equity stakes, starting with Intel. Rather than just handing out billions, Washington is now looking for ownership, with officials suggesting a potential 10% government stake in Intel as part of a strategy to secure domestic chipmaking.
Treasury Secretary Scott Bessent framed the move as protection for America’s semiconductor supply, not a bid for profit or control. Commerce Secretary Howard Lutnick insisted this is about ensuring stability, not managing Intel’s operations. Investors responded quickly, with Intel’s stock climbing around 7% on the news. Meanwhile, SoftBank added to the drama by separately investing $2 billion, becoming a significant shareholder.
The government is also examining similar equity conversions with Micron, TSMC, and Samsung. Billions in grants have already been awarded, but Lutnick has hinted some deals were overly generous and is renegotiating terms. By demanding equity, Washington is looking to align taxpayer funding with ownership, turning subsidies into stakes that return value to the public.
Critics worry this blurs the line between industrial policy and political influence. Intel has struggled in recent years against competitors like AMD and NVIDIA, and skeptics argue that without technological breakthroughs, ownership alone won’t reverse its fortunes. Still, the plan marks a profound shift: subsidies are no longer gifts, but investments meant to anchor America’s technological independence.
| Question | Short Answer |
|---|---|
| Is Trump buying Intel personally? | Nope—it’s the U.S. government converting grants into an equity stake, ~10%. |
| Will the government control Intel? | No—the stake is non-voting, just financial, not governance. |
| Why Intel? | It’s the last major U.S. advanced chipmaker; this move supports domestic supply. |
| What’s SoftBank doing? | Injected $2 billion privately, separate from the government’s share. |
| May this be applied to others? | Yes—similar equity-for-grant models are being considered for TSMC, Micron, Samsung. |
| Risks? | Potential politicization, and whether Intel can deliver tech gains is uncertain. |
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