U.S. authorities have targeted AI chipmaker stocks.

# US authorities target AI chipmaker stocks

U.S. Commerce Secretary Howard Lutnick is considering the possibility of the government acquiring a stake in Intel and other chip manufacturers in exchange for cash grants under the CHIPS Act. This was reported by Reuters citing sources.

CHIPS Act — a law enacted in August 2022 during the Biden administration. The program is aimed at supporting chip manufacturing and the development of science in the country. As part of the initiative, $52.7 billion has been allocated to stimulate the growth of the semiconductor industry:

• $39 billion — for subsidies and grants for the construction and expansion of factories;
• $11 billion — for scientific research and development;
• the remaining funds — for tax incentives for chip developers.

A significant portion of the funding under the CHIPS Act has not yet been allocated among companies such as Micron, TSMC, Samsung, and Intel.

The administration of the current president, Donald Trump, previously entered into a number of unusual deals with American companies. Nvidia and AMD were allowed to sell stripped-down AI chips to China in exchange for 15% of the revenues from these deals.

Such government intervention in corporate affairs has raised concerns among critics. They fear the creation of new categories of corporate risks and poor decisions that could result in losses for taxpayers.

In response to a question regarding the U.S. government's acquisition of a stake in TSMC, Taiwan's Minister of Economic Affairs Wang Mei-hua stated that his department would consult with the company. He emphasized that it is a private entity, not a state-owned one.

"We will also discuss this with the National Development Council, as it is a shareholder of TSMC. We will try to thoroughly understand the essence of the statements made by the US Secretary of Commerce, but this will require time for discussion and assessment," he said.

According to Reuters, White House press secretary Caroline Levitt allegedly confirmed that Lutnik wants to obtain 10% of Intel shares for the benefit of the state. However, there is no direct confirmation of this.

"The President intends to put America's interests first — both in terms of national security and in terms of the economy. This is a creative idea that has never been implemented before," she told reporters.

It is assumed that the stake in the companies will be non-voting — the government will not be able to manage the business, but will receive income.

"The Biden administration was literally handing out money to Intel and TSMC for nothing, and Donald Trump said: 'Hey, we want shares for the money. If we give you money, we want a stake in the business for American taxpayers,'" said Lyutnik.

SoftBank Investments and Intel's Problems

His statement came the day after SoftBank Group agreed to invest $2 billion in Intel.

The Japanese group will pay $23 per share. It has sought to become a key player in the field of artificial intelligence for several years, but has mostly remained on the sidelines.

Recently, the company became a participant in the StarGate project and invested in OpenAI with the latter being valued at $300 billion.

In August 2024, Intel announced the layoff of 15% of its staff, or about 15,000 employees, amid falling behind in the AI race. The decision was part of a plan to cut expenses by $10 billion in 2025, related to poor financial performance.

Let us remind you that in September, Intel announced a series of changes aimed at improving efficiency, competitiveness, and increasing profitability.