WASHINGTON, Aug 22 — The Trump administration is considering taking equity stakes in companies receiving funds from the 2022 CHIPS Act, but has no plans to seek shares in bigger semiconductor firms that are increasing their United States (US) investments, the Wall Street Journal (WSJ) reported on Thursday, citing a government official.
The development follows comments made by US Commerce Secretary Howard Lutnick, who said on Tuesday that the government is continuing to work on the possibility of taking a 10 per cent stake in troubled chipmaker Intel.
However, the administration does not intend to take equity stakes in companies like TSMC, which are ramping up investment. Businesses not increasing their commitments may need to offer equity to the government in exchange for subsidies.
"The Commerce Department is not looking to take equity from TSMC and Micron," the official told WSJ.
TSMC executives have already had discussions about giving back their subsidies if the administration asks to become a shareholder, according to the report.
The White House and TSMC did not immediately respond to Reuters' requests for comment.
TSMC, which counts Nvidia and Apple as key clients, announced plans for a US$100 billion (RM422.9 billion) investment in the US during an event with President Donald Trump at the White House in March. This investment is in addition to US$65 billion (RM274.8 billion) committed for three manufacturing facilities in the state of Arizona.
The US Commerce Department, which oversees the US$52.7 billion (RM222.8 billion) CHIPS Act, formally known as the CHIPS and Science Act, late last year finalised subsidies of US$6.6 billion (RM27.91 billion) for TSMC to produce semiconductors in the US.
Besides Intel, Micron, TSMC, and Samsung were among the biggest recipients of CHIPS Act funding.
In the past, the US government has taken stakes in companies during periods of economic uncertainty to provide financial support and restore confidence.
