WASHINGTON, Aug 21 (Reuters) - The Trump administration
is considering taking equity stakes in companies getting funds
from the 2022 CHIPS Act but has no similar plans for bigger
firms boosting U.S. investments, such as TSMC and Micron, a
White House official told Reuters.
The official confirmed a Wall Street Journal report that the
administration does not intend to seek equity stakes in
semiconductor companies, such as Micron and TSMC
, that plan to step up investment.
On Tuesday, U.S. Commerce Secretary Howard Lutnick said the
government continued to work on the possibility of taking a 10%
stake in troubled chipmaker Intel ( INTC ) and suggested it
would seek further stakes in other grant recipients.
"If we're going to give you the money, we want a piece of
the action for the American taxpayer," Lutnick told CNBC.
While the Biden administration had been giving "money for
free" to companies such as Intel ( INTC ) and TSMC, he added, "Donald
Trump turned it into saying, 'Hey, we want equity for the
money.'"
At a March event with President Donald Trump at the White
House, TSMC, which has Nvidia ( NVDA ) and Apple ( AAPL ) as key
clients, announced plans for the new $100-billion U.S.
investment, in addition to $65 billion committed for three
manufacturing facilities in the state of Arizona.
Micron boosted its U.s. investment plans in June.
TSMC executives have already had discussions about returning
their subsidies if the administration asks to become a
shareholder, the Wall Street Journal said.
The White House and TSMC declined to comment. Micron did not
immediately respond to a request for comment.
The U.S. Commerce Department, which oversees the $52.7-
billion CHIPS and Science Act, finalized subsidies of $6.6
billion late last year for TSMC to produce semiconductors in the
United States.
The commerce department did not immediately comment.
Besides Intel ( INTC ), Micron, TSMC and Samsung were
among the biggest recipients of CHIPS Act funding, but almost
all of it has yet to be disbursed.
Trump has previously said he wanted to kill the CHIPS Act
program.
In the past, the U.S. government has taken stakes in
companies during periods of economic uncertainty to provide
financial support and restore confidence.