WASHINGTON, Aug 20 (Reuters) -

Liberal U.S. Senator Bernie Sanders on Wednesday threw his

support behind President Donald Trump's plan to convert U.S.

grants to chipmakers, including $10.9 billion for Intel ( INTC ), into

government stakes in the companies.

"If microchip companies make a profit from the generous

grants they receive from the federal government, the taxpayers

of America have a right to a reasonable return on that

investment," Sanders, an Independent who caucuses with

Democrats, said in a statement to Reuters.

The awards were part of the 2022 Chips and Science Act,

which sought to lure chip production away from Asia and boost

American domestic semiconductor output with $39 billion in

subsidies.

Commerce Secretary Howard Lutnick is

looking into the government

taking equity stakes in Intel ( INTC ) and other chipmakers in

exchange for the grants, sources told Reuters on Tuesday.

Much of the funding for companies such as Micron,

Taiwan Semiconductor Manufacturing Co ( TSM ) and Samsung

has not been dispersed.