US EditionUS 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.
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PBS NewsHour
cascadepbs.orgWhy the federal government could take a stake in Intel
President Trump is weighing taking a 10% stake in computer chip maker Intel. If approved, it would mark one of the largest U.S. government interventions in a private company since the auto bailout of 2008. Amna Nawaz discussed more with Peter Harrell of the Carnegie Endowment for Peace. He is a former White House economic advisor in the Biden administration.
'Oh my god!' MSNBC panel incredulous as they see Trump admin sprinting towards socialism
A proposal by Donald Trump’s commerce secretary that tech industry giant Intel should hand over an equity stake to the U.S. government in exchange for CHIPS Act funds set off laughter and incredulity on MSNBC on Thursday morning.On Tuesday, Trump appointee Howard Lutnick made the suggestion during an appearance on CNBC, where he proposed, “We should get an equity stake for our money. So we’ll deliver the money, which was already committed under …
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