Since its implementation in 2022, the Chips and Science Act (CHIPS Act), enacted by former US President Joe Biden, has become a key policy in promoting the reshoring of semiconductor manufacturing to the United States. However, over the past few years, this subsidy program has been criticized for "giving away money" to major semiconductor manufacturers without generating corresponding benefits for the industry.
Now, under the Trump administration, U.S. Commerce Secretary Howard Lutnick has publiclydisplayIn the future, subsidy beneficiaries, including Intel, must give up company equity in return to be eligible for funding.
Rumors of a 10% stake suggest Intel may welcome a "new major shareholder"
Howard Lutnick stated bluntly on a CNBC program: "We should exchange money for equity. If the government is going to invest so much money, it must ensure that the American people can get a share." He emphasized that any arrangement would not involve governance or voting rights, but simply holding equity, symbolizing a shift from the previous "subsidy" approach to "investment."
Recent news indicates that the US government is discussingAcquired approximately 10% of Intel shares through investmentIf the relevant claims are true, the US government will become Intel's largest shareholder. This news has attracted great attention from the market, who believe that this move will reshape the relationship between Intel and the US government.
As for Intel's earlier announcementReceived $20 billion investment from Softbank, equivalent to acquiring approximately 2% of its shares, making SoftBank Intel's fifth-largest shareholder. If the potential investment by the US government is included, Intel's ownership structure is bound to undergo significant changes.
Expanding to other chip factories? TSMC may also be named
In addition to pointing the finger at Intel, Howard Lutnick also mentioned the $66 billion subsidy provided to TSMC's Arizona factory during the Biden administration, revealing that the Trump administration may adopt a similar model to Intel in the future and require other beneficiary companies to also hand over their equity.
Howard Lutnick said: "During the Biden era, it was subsidies, but during the Trump era, subsidies will be converted into investments. Since money is to be given, it must be exchanged for tangible benefits." This means that the future distribution method of CHIP Act funds may be fully shifted to the form of "investment."
Intel's Silicon Heartland and Uncertainty
Intel has recently invested billions of dollars in a massive chip manufacturing complex near Columbus, Ohio's largest city, known as "Silicon Heartland." The facility is expected to become one of the most advanced AI chip manufacturing bases in the United States. However, progress has not been smooth sailing.
However, in July of this year, Intel CEO Lip-Mo Chen stated in an internal memo that "no more blank checks," indicating that the pace of construction will be adjusted based on market demand. Therefore, the first factory is not expected to open until 7 at the earliest. This has also led to external doubts about whether Intel's long-term operating strategy will generate significant returns, even if the US government acquires equity through investment.
The Trump Administration’s New Semiconductor Investment Strategy
This proposal highlights the Trump administration's new approach to semiconductor policy: moving beyond simply wooing companies with subsidies to instead aiming to ensure taxpayers receive a tangible return on their money through "investment." If the United States truly becomes Intel's largest shareholder, it would not only be a first in history but also potentially set a new precedent for future U.S. support of strategic industries.
It remains to be seen whether such a change will affect the confidence of foreign investors and partners in Intel, or cause other chip manufacturers to be more cautious in applying for US subsidies.
