Last week, the Trump administration announced it could acquire a stake in Intel in exchange for $10.86 billion in federal subsidies the company receives under the Chips and Science (CHIPS) Act. However, it is clarified that not all companies that receive funds under the same program are obliged to declare their capital. Companies such as TSMC and Micron, which have increased their investments in the United States, have no additional obligations, according to a government official familiar with the matter.
Earlier, Commerce Secretary Howard Lutnick appeared to tease NVIDIA with comments about the company’s H20 AI chips, and may have also taken aim at chip giant TSMC. “The Biden administration literally gave free money to Intel and TSMC gave free money, and all these companies just gave free money,” he said. Tuesday. “Donald Trump is making a statement about it: ‘Hey, we want equality in money. If we give you money, we want a piece of the action.’”
However, TSMC may have noticed the dispute over Intel shares, and executives are reportedly in preliminary talks about repaying subsidies if the US government applies to become a shareholder, the note said. WJthe sources. TSMC received $6.6 billion for its Arizona plant, which began making chips late last year. Apple and more. However, the company recently announced that it will invest an additional $100 billion over the next four years to build three more factories, two modern packaging facilities and a large research and development center.
With this additional investment, the Trump administration will not need to own TSMC or Micron (which is happening). has expanded its facilities in the United States in Idaho, New York and Virginia). “The Commerce Department has no plans to acquire shares in TSMC and Micron,” said an anonymous official.
Still, the U.S. government’s efforts to invest in companies are likely to face legal challenges over contract terminology. Companies are already required to share their earnings with the US government if their profits exceed a certain amount.
In another development, the US government could divert up to $2 billion in CHIPS Act funds to critical mining projects in the US. Reuters reported. The purpose of this measure is to reduce US dependence on China for key minerals that are often used in the electronics and defense industries. “The government is trying to find creative ways to finance the important mining sector,” a source told Reuters, adding that those plans could change.