The administration wants a profit from the $11 billion invested via grants from the CHIPS and Sciences Act.
Sen. Bernie Sanders (I-Vt.) offered support for the Trump administration’s plan to take an equity stake in chipmaker Intel.
The stake would be in exchange for the previous administration’s award to Intel of almost $11 billion in grants from the CHIPS and Sciences Act that was passed last year and meant to support U.S. semiconductor production.
Sanders spoke in support of the plan, saying that taxpayers should get a kickback from where their tax dollars are invested.
“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.
Commerce Secretary Howard Lutnick confirmed the administration’s plan, saying in an Aug. 19 interview that the federal government is considering the move on Intel due to Biden administration funding.
“We should get an equity stake for our money, so we’ll deliver the money which was already committed under the Biden administration,” Lutnick said. “We’ll get equity in return for it, get a good return for the American taxpayer instead of just giving grants away.”
If the plan moves forward, the federal government wouldn’t have a voting stake, or any governing rights to Intel operations, though Lutnick didn’t offer details about what the proposed stake would be.
White House press secretary Karoline Leavitt told The Epoch Times at an Aug. 19 press briefing that the Department of Commerce currently continues to “iron out the details” on the deal.
“The president wants to put America’s needs first from a security and economic perspective,” Leavitt said. “It’s a creative idea that has never been done before to ensure that we’re both reshoring these critical supply chains while also gaining something in return.”
