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As noted over recent days, the administration is looking to acquire a 10% stake in Intel through converting $7.9 billion in CHIPS Act grants into equity. This conversion would require additional federal funding since $7.9 billion isn’t enough for a 10% stake in Intel. The administration reportedly intends to apply the same approach to Micron, Samsung, and TSMC using their respective CHIPS Act grants.
According to Reuters, $33.7 billion has been allocated under the CHIPS Act, with $6.6 billion earmarked for TSMC, $6.2 billion for Micron, and $4.75 billion for Samsung. Actual disbursements have been minimal, providing flexibility in negotiating these grants-to-equity conversions.
TSMC received the largest allocation ($6.6 billion), followed by Micron ($6.2 billion) and Samsung ($4.75 billion).
The Trump administration’s plan to distribute government patronage among leading chipmakers negates some of Intel’s expected unique advantages, potentially explaining the modest decline in its stock price during after-hours trading.
This strategy aims to support domestic semiconductor manufacturing while ensuring U.S. companies receive significant funding from the CHIPS Act.
