Commerce Secretary Howard Lutnick said on Tuesday that Intel must provide the U.S. government with an equity stake in the company in return for receiving funds from the CHIPS Act. Lutnick’s comments during a CNBC interview shed more light on how the Trump Administration may take an ownership position in Intel, saying, “We should get an equity stake for our money.”
CNBC reports that Commerce Secretary Howard Lutnick stated in an interview this week that Intel must give the U.S. government an equity stake in the company in exchange for receiving funds from the CHIPS Act. The announcement came during Lutnick’s appearance on CNBC’s Squawk on the Street on Tuesday.
“We should get an equity stake for our money,” Lutnick said, emphasizing the government’s position on the matter. “So we’ll deliver the money, which was already committed under the Biden administration. We’ll get equity in return for it.”
Lutnick clarified that this arrangement would not come with governance rights in the company. Lutnick explained, “It’s not governance, we’re just converting what was a grant under Biden into equity for the Trump administration, for the American people. Nonvoting.”
The CHIPS Act, which was signed into law by President Joe Biden in 2022, aims to bolster the U.S. semiconductor industry and reduce the country’s reliance on foreign chipmakers. In practice, it has failed to spur growth at Intel, which has undergone massive layoffs despite the funding.
Intel, along with other major U.S. chipmakers, has been actively seeking government support to expand its domestic manufacturing capabilities. The company has previously announced plans to invest heavily in new chip fabrication facilities in the United States, including a $20 billion investment in two new factories in Arizona. Despite these grand plans, Intel delayed groundbreaking on its “Silicon Heartland” in Ohio.
The move to require equity stakes in exchange for CHIPS Act funds aligns with President Donald Trump’s call for more reshoring of U.S. manufacturing. The Trump administration has been vocal about the need to reduce the country’s dependence on foreign suppliers, particularly in critical industries such as semiconductors.
Intel, along with other U.S. chipmakers like Micron Technology and Texas Instruments, stands to benefit significantly from the CHIPS Act funds. However, the requirement to provide equity stakes to the government in return for the financial support adds a new dimension to the ongoing discussions surrounding the industry’s future.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
