Trump is proposing to convert CHIPS Act grants into equity stakes for the government rather than fully abolishing the legislation. Lutnick framed the shift as replacing Biden-era grants given without ownership with equity that gives the American taxpayer a stake. The proposed arrangement could strengthen Intel by providing capital and aligning with US semiconductor priorities. Some experts say a government ownership stake makes strategic sense, but others warn the move could deter companies from accepting federal grants and introduce uncertainty for firms already involved in or considering grant programs.
"The Biden administration literally was giving Intel money for free and giving TSMC money for free, and all these companies just giving the money for free, and Donald Trump turned it into saying, 'Hey, we want equity for the money. If we're going to give you the money, we want a piece of the action for the American taxpayer,'" Lutnick said.
"It's not governance, we're just converting what was a grant under Biden into equity for the Trump administration, for the American people," Lutnick told CNBC.
"makes sense, given the company's key role in producing semiconductors in the US,"
"uncertainty for any company who is already part of a federal grant program or considering one."
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