Commerce Secretary Howard Lutnick confirmed that the US is discussing taking a stake in Intel Corp. as part of a strategy to turn grants from the Chips and Science Act into equity. While the plan would not confer voting rights to the government, it could position it as Intel's largest shareholder. Lutnick criticized past subsidies to semiconductor manufacturers as lacking returns for taxpayers and stated that the goal is to secure equity for taxpayer contributions. This potential shift in policy could set a precedent for similar deals with other chipmakers.
Commerce Secretary Howard Lutnick confirmed that the US government is in discussions to take an equity stake in Intel Corp., transforming grants from the Chips and Science Act into stock. This does not grant the federal government governance or voting rights, but could position it as Intel's largest shareholder. He criticized the previous administration's approach for providing subsidies without accountability, emphasizing the change to securing taxpayer interests through equity stakes instead.
Lutnick criticized the past semiconductor subsidy approach, questioning why taxpayers should support companies worth billions without receiving anything in return, stating, 'What is in it for the American taxpayer?' He reiterated the stance that securing equity for the taxpayer's contribution is essential, 'So we'll deliver the money which was already committed under the Biden administration, we'll get equity in return for it.'
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