Chip Stocks Fall on Reports White House Seeking Equity in Exchange for Grants

Contact Your Elected Officials

The commerce secretary had already confirmed the administration’s plan regarding Intel but had not mentioned whether the plan would extend to other chipmakers.

Share prices of major semiconductor companies fell sharply on Aug. 20 following reports that the Trump administration is considering taking equity stakes in some chipmakers in exchange for federal funding provided under the CHIPS and Science Act.

Intel share prices dropped by 7 percent, Micron share prices fell by 4 percent, and Taiwan Semiconductor Manufacturing Co. (TSMC) share prices slid by 1.8 percent on Aug. 20. Share prices of Nvidia and Advanced Micro Devices (AMD) declined by 0.14 percent and 0.8 percent, respectively.

Citing a White House official and another anonymous source, Reuters reported on Aug. 20 that Commerce Secretary Howard Lutnick has been working on a plan under which the U.S. government would receive equity stakes in Intel and other recipients of CHIPS Act grants. Micron, TSMC, and Samsung are among the recipients, according to the report, although the sizes of any potential stakes have not been determined.

The White House and Commerce Department did not respond to The Epoch Times’ request for comment.

On Aug. 19, Lutnick confirmed the administration’s plan regarding Intel but did not clarify whether the request would extend to other chipmakers.

President Donald Trump thinks that rather than giving away grants, the United States “should get the benefit of the bargain,” Lutnick told CNBC.

“We should get an equity stake for our money, so we’ll deliver the money which was already committed under the Biden administration,” he said. “We’ll get equity in return for it, [and] get a good return for the American taxpayer instead of just giving grants away.”

The federal government would not obtain a voting stake or governance rights to manage Intel’s operations through the investment, Lutnick said. He did not disclose the government’s proposed total stake in Intel.

The previous administration awarded billions of dollars in grants from the CHIPS Act, signed into law by President Joe Biden, to boost domestic semiconductor production. Intel received nearly $11 billion in CHIPS Act grants, while TSMC was awarded $6.6 billion and Micron $6.1 billion.

White House press secretary Karoline Leavitt told reporters on Aug. 19 that the Commerce Department continues to “iron out the details” to secure a 10 percent government stake in Intel.

“The president wants to put America’s needs first, both from a national security and economic perspective, and it’s a creative idea that has never been done before,” she said in response to a question from The Epoch Times.

She did not confirm whether similar requests would be sent to other chipmakers.

By Emel Akan

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

If Federal Food Assistance Programs End, Theft Begins

Many patriotic Americans well versed in American History have...

Tucker EN FUEGO: Taking Stock of MAGA, Ten Years on

Draining of the Swamp has yet to come anything close to fruition, as the creatures that populate said Swamp yet cling bitterly to power.

Tylenol’s Headache

When President Trump, RFK Jr., and Dr. Mehmet Oz called for pregnant women to avoid using acetaminophen, Tylenol got the headache.

American Restaurants Are Going Broke

U.S. restaurant bankruptcies surged to 22% in 2020 amid COVID-19 and stayed elevated at 14% last year due to Biden’s “Build Back Better” policy.

A Few Fun Alternatives to the”Gory Stuff” at Halloween

Halloween has gone off the rails with gore through the decades.  But there are ways to enjoy the "scary stuff" without giving into darker, pagan alliances.  

US Sending Carrier Strike Group to Latin America, Pentagon Says

The Pentagon on Friday announced the deployment of an aircraft carrier to Latin America to target drug trafficking organizations.

FBI Confirms 10 Missing Children, Teens Rescued in Hawaii Joint Operation

State and federal authorities announced on Thursday that an operation in Hawaii resulted in the rescue of 10 missing children and teens earlier this month.

New York AG Letitia James Pleads Not Guilty to Mortgage Fraud Charges

New York Attorney General Letitia James pleaded not guilty to mortgage fraud charges during an Oct. 24 arraignment in Norfolk, Virginia.

US Annual Inflation Ticks Up to 3 Percent for First Time Since January

The U.S. annual inflation rate rose to the highest level since January, driven by higher gasoline prices and shelter costs.

Trump Pardons Convicted Binance Founder Changpeng Zhao, White House Confirms

Trump pardoned Binance founder Changpeng Zhao, convicted of money laundering two years ago while leading the global cryptocurrency exchange.

Trump Calls off Meeting With Putin, White House Says

White House says Secretary Rubio and Russia’s Lavrov had a productive call; no further meetings or Trump-Putin talks are planned soon.

President Signs Rare Earth Agreement With Australia’s PM

President Trump hosted Australian PM Albanese at the White House, where both leaders signed a new agreement on rare earth mineral cooperation.

Trump Says Insurrection Act Is ‘Strongest Power a President Has’

President Trump detailed plans to invoke the Insurrection Act to address rampant crime, calling it the “strongest power a president has.”
spot_img

Related Articles

Popular Categories

MAGA Business Central