U.S. Eyes 10% Intel Stake Amid CHIPS Act Push

- Commerce Secretary Lutnick advocates for equity-for-funding policy to strengthen U.S. manufacturing. - Foreign chipmakers raise concerns over potential investment delays due to the proposal. On August 20, 2025, CNBC reported that the U.S. government is weighing a new funding strategy for the CHIPS Act. Led by Commerce Secretary Howard Lutnick and supported by President Donald Trump, the government is considering taking equity stakes in semiconductor companies. The proposed plan would allow the government to acquire equity, including a potential 10% stake in Intel, in exchange for financial grants, which represents a significant departure from traditional methods. During an interview on August 20, Commerce Secretary Howard Lutnick clarified the rationale for this pivot, stating, “We should get an equity stake for our money...instead of just giving grants away,” and highlighting its dual objective of securing taxpayer returns while fortifying domestic manufacturing. This policy shift would impact recipients of the $52.7 billion CHIPS Act funding, which the government designed to boost U.S. semiconductor production and reduce foreign dependencies. While negotiations with Intel for an equity stake are ongoing, international tensions are surfacing. A South Korean chip industry official expressed skepticism, suggesting such arrangements might deter foreign companies from U.S. investments. Similarly, Taiwan’s Economy Minister indicated that industry giants like TSMC would need further dialogue to assess the implications. Such pushback underscores potential hurdles, particularly for companies navigating global investment strategies. Domestically, critics warn that the policy could risk taxpayer financial exposure if equity investments underperform. Nonetheless, the U.S. government has recently trialed unconventional partnerships, including Nvidia's AI chip sales under specific conditions.