Aug 21 (Reuters) - The Trump administration is
considering taking equity stakes in companies receiving funds
from the 2022 CHIPS Act but has no plans to seek shares in
bigger semiconductor firms that are increasing their U.S.
investments, the Wall Street Journal reported on Thursday,
citing a government official.
The development follows comments made by U.S. Commerce
Secretary Howard Lutnick, who on Tuesday said the government is
continuing to work on the possibility of taking a 10% stake in
troubled chipmaker Intel ( INTC ).
However, the administration does not intend to take equity
stakes in companies like TSMC, which are ramping up
investment, the official told the Journal. Businesses not
increasing their commitments may need to offer equity to the
government in exchange for subsidies.
"The Commerce Department is not looking to take equity from
TSMC and Micron," the official told WSJ.
TSMC executives have already had discussions about giving
back their subsidies if the administration asks to become a
shareholder, according to the report.
The White House and TSMC did not immediately respond to
Reuters' requests for comment.
TSMC, which counts Nvidia ( NVDA ) and Apple ( AAPL ) as key
clients, announced plans for a $100 billion investment in the
United States during an event with President Donald Trump at the
White House in March. This investment is in addition to $65
billion committed for three manufacturing facilities in the
state of Arizona.
The U.S. Commerce Department, which oversees the $52.7
billion CHIPS Act, formally known as the CHIPS and Science Act,
late last year finalized subsidies of $6.6 billion for TSMC to
produce semiconductors in the United States.
Besides Intel ( INTC ), Micron, TSMC and Samsung
were among the biggest recipients of CHIPS Act funding.
In the past, the U.S. government has taken stakes in
companies during periods of economic uncertainty to provide
financial support and restore confidence.