U.S. Explores Equity Stakes in Chipmakers via CHIPS Act, Sparking Market Concerns

The TRUMP administration is considering taking equity stakes in semiconductor companies—including Intel, Micron, Taiwan Semiconductor, and Samsung—as part of CHIPS Act funding agreements. Commerce Secretary Howard Lutnick confirmed the discussions, signaling a more interventionist approach to bolstering domestic chip production.

Wall Street reacted skeptically, with the PHLX Semiconductor Index dropping nearly 1% amid broader tech sector declines. Intel, Micron, and TSMC shares were among the hardest hit as analysts questioned whether the terms WOULD prove favorable for chipmakers.

The shift toward equity-based deals marks a departure from earlier grant structures, raising concerns about government overreach in corporate operations. Market sentiment suggests chipmakers may demand sweeter terms to offset perceived risks of diluted ownership.