‘We should get an equity stake for our money,’ Commerce Secretary Howard Lutnick said.
The U.S. government is seeking an equity stake in chipmaker Intel, Commerce Secretary Howard Lutnick said on Aug. 19.
In November 2024, the previous administration awarded Intel nearly $11 billion in grants from the CHIPS and Science Act—legislation designed to bolster U.S. semiconductor production—to support its domestic manufacturing investment plans.
Rather than giving away grants, President Donald Trump thinks the United States “should get the benefit of the bargain,” according to Lutnick.
“We should get an equity stake for our money, so we’ll deliver the money which was already committed under the Biden administration,” Lutnick told CNBC’s “Squawk on the Street” in Tuesday’s interview. “We’ll get equity in return for it, 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 direct Intel’s operations through the investment, he said. Lutnick did not disclose the government’s proposed total stake in Intel.
White House press secretary Karoline Leavitt told The Epoch Times at an Aug. 19 press briefing that the Department of Commerce continues to “iron out the details” to secure a government stake in Intel.
“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.”
The administration’s newest policy initiative comes as the $110 billion company announced Japan’s SoftBank will invest $2 billion in Intel common stock to “deepen their commitment to investing in advanced technology and semiconductor innovation in the United States.”
Shares of Intel increased by as much as 11 percent during the Aug. 19 trading session, bringing the stock’s year-to-date gain to about 27 percent.
Earlier this month, Trump urged Intel CEO Lip-Bu Tan to resign over alleged ties to Chinese technology companies.
“The CEO of Intel is highly conflicted and must resign, immediately. There is no other solution to this problem,” Trump said in an Aug. 7 post on Truth Social.
Days later, on Aug. 11, after meeting with Tan, the president said in a Truth Social post: “The meeting was a very interesting one. His success and rise is an amazing story. Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week.”
Ultimately, Lutnick said, the administration aims to help Intel succeed and ensure that the United States becomes a global leader in chip production.
“We want Intel to be successful in America,” he said. “We’d like an American transistor built in America, right? We’d like an American to be doing that.”
By Andrew Moran
