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US examines equity stake in chip makers for CHIPS Act cash grants: Reuters
The U.S. government plans to acquire a 10% non-voting equity stake in Intel as part of the CHIPS Act to secure taxpayer returns and strengthen domestic semiconductor manufacturing.
- On August 20, 2025, Commerce Secretary Howard Lutnick announced that the U.S. government intends to acquire a 10% ownership interest in Intel as a condition for providing CHIPS Act funding.
- The government’s equity interest comes amid Intel’s financial difficulties, which include a massive multibillion-dollar deficit in its foundry segment and a credit rating downgrade linked to profitability challenges and setbacks.
- Intel announced second-quarter revenue of $12.86 billion, exceeding expectations, but posted an adjusted loss of ten cents per share, leading to a nearly 7% decline in its stock amid investor worries.
- Lutnick explained that funds initially provided as a grant during the Biden administration are now being transformed into equity under the Trump administration, while Senator Ron Wyden condemned the move as a form of corporate coercion.
- This move signals Washington's intent to support Intel but raises debate over government involvement versus relying on private investment and market forces for semiconductor competitiveness.
59 Articles
59 Articles
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Trump administration considers stake in Intel as condition of CHIPS funding, official tells CNBC
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GOP senator: US stake in Intel would be 'step toward socialism'
Sen. Rand Paul (Ky.), a libertarian-minded Republican, criticized the Trump administration’s push to acquire a stake in U.S. chipmaker Intel, suggesting the move would be a “step toward socialism.” “If socialism is government owning the means of production, wouldn’t the government owning part of Intel be a step toward socialism?” Paul said on Wednesday in a post on the social platform X. “Terrible idea,” he added, linking to a news story about t…
The US negotiates to acquire 10% of the multinational and become the first shareholder; the movement, unpublished in its economic policy, arrives after securing the sales of Nvidia and AMD chips in ChinaHuang, the negotiator: the leader of Nvidia is the key voice to break the blockade between the US and China in Intel artificial intelligence is going through a deep crisis. The first chip giant, Silicon Valley pioneer, lost $18.8 billion in 2024 …
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