The United States (US) administration is considering acquiring stakes not only in Intel but also in other major chip manufacturers such as Samsung, TSMC, and Micron to bolster semiconductor production in the country. This plan has challenged previous expectations that it would focus solely on Intel and sparked a new debate in the tech world.
US May Acquire Stake in Chip Companies
According to a recent report by Reuters, the Trump administration is considering converting incentives granted to companies under the CHIPS Act, enacted to support the semiconductor sector, into equity.
This practice was previously rumored to be limited to Intel. However, it is now being reported that a similar strategy will apply to other major US manufacturing companies.
The CHIPS Act allocated $7.9 billion to Intel, $6.6 billion to TSMC, $6.2 billion to Micron, and $4.75 billion to Samsung. These funds were intended to be used to expand the companies’ US manufacturing facilities and build new factories.
However, a large portion of the funds have not yet been fully disbursed to the companies. This presents the Trump administration with an opportunity to renegotiate grant agreements with stock purchases.
This government stock purchase plan has particularly shifted the balance of power for Intel, which was previously thought to be the single largest beneficiary of federal support. Intel’s shares fell slightly in after-market trading following the news.
The potential for government control of all major players in the semiconductor sector is of significant concern to both the technology industry and financial markets.
