Updated:The US government earlier confirmed that it would provide funding for some of the CHIPS Act subsidies originally promised to Intel, as well as the Secure Enclave program.Convert to actual investment, directly acquired approximately 9.9% of Intel's common stock holdings, amounting to US$89 billion, which means that the US government is no longer just a subsidy provider, but has officially become one of Intel's shareholders.
It was previously reported that the US government was considering using chip subsidiesEquity swap "investment", including Intel, TSMC, Samsung and other industries may be affected, but according to the Wall Street JournalPressIt pointed out that Intel may need to exchange part of its equity for the US$108.6 billion in subsidies it previously obtained, but TSMC and Micron were exempted because they had previously expanded their investment and development in the United States.
Intel's subsidy-for-equity swap sparks controversy
The Trump administration has previously announced new conditions for Intel subsidies, emphasizing that the government, in addition to providing funding, should also receive a stake. This move immediately sparked industry concern, as previous subsidies provided by the Biden administration did not require companies to cede equity. For Intel, accepting this condition would mean simultaneously accepting the US government as a shareholder while receiving subsidies, potentially impacting its financial structure and operational flexibility.
Related news also indicates that TSMC has internally discussed the possibility of "returning subsidies" to prevent the US from becoming a shareholder. As these discussions are still in the early stages, it is currently unclear whether this will ultimately affect TSMC's operations in Arizona.
TSMC and Micron receive exemptions for expanding investment
However, according to U.S. government officialsLatest statementBecause TSMC and Micron have already invested more in expansion in the United States, they will not be required to surrender their equity. TSMC's Arizona wafer fab began mass production last year, primarily for clients like Apple, and plans to invest an additional $1000 billion over the next four years to add three new wafer fabs, two advanced packaging facilities, and a major R&D center.
As for Micron, it has expanded its production capacity in Idaho, New York, and Virginia. Because it, like TSMC, has made a clear long-term investment commitment to the U.S. semiconductor industry, the U.S. government has given it different treatment in terms of subsidy conditions.
Legal Challenges and Industry Observations
Despite this, experts believe that if the US were to force the acquisition of equity, it would still face legal challenges. Under existing contractual terms, companies are only required to share profits with the government when profits exceed a certain threshold, rather than ceding equity. If this move is rushed, it could undermine corporate trust and further dampen subsequent investment.
Meanwhile, the US government has reportedly planned to redirect some of its $20 billion CHIPS Act subsidies to "critical minerals" programs, aiming to reduce its reliance on China for rare earth and strategic metals. These minerals are widely used in the electronics and defense industries and are also considered alternative supply chain strategic pillars.
Hidden concerns amidst strategic shifts
Overall, the CHIPS Act was intended to strengthen domestic US manufacturing capabilities and avoid over-reliance on Asian supply chains. However, with the current policy shift, balancing subsidy conditions, fairness, and business confidence will remain a challenge. Especially amidst intensifying US-China technological competition, overly stringent or inconsistent conditions could cause some manufacturers to reassess their investment strategies and even impact the overall progress of semiconductor reshoring initiatives.
