U.S. Government Takes Equity Stakes in Chipmakers Under CHIPS Act

The Biden administration is rewriting the rules of industrial policy with direct equity investments in semiconductor giants. Intel, Micron, TSMC and Samsung are now negotiating deals that WOULD give Washington ownership stakes through the $52.7 billion CHIPS Act—a dramatic departure from traditional subsidy models.

Revenue-sharing agreements with Nvidia and AMD add another layer to the strategy. The White House will claim 15% of advanced chip sales to China, transforming market access into a geopolitical lever. This dual approach aims to maintain U.S. technological dominance while hardening national security safeguards.

Parallel efforts see the Pentagon emerging as the primary investor in rare earth supply chains. The multi-pronged intervention signals America's determination to control critical technologies rather than merely subsidize them.