The U.S. Commerce Department is considering taking equity stakes in companies like Intel as part of the CHIPS Act funding program, according to sources familiar with the matter. This move reflects a broader effort to boost domestic manufacturing and aligns with President Trump’s agenda. Secretary Howard Lutnick has proposed this approach for Intel, seeking a 10% stake in exchange for CHIPS Act grants. He intends to expand this model to other firms. precedents have shown the government negotiating such arrangements before: Nvidia received approval to sell H20 AI chips to China while retaining 15% of sales, and the Pentagon is poised to become a major shareholder in a rare-earth mining company. Critics raise concerns about increased corporate risk tied to political decisions and potential taxpayer exposure if investments prove unsuccessful. 52.7 billion dollars in CHIPS Act funding remains largely unallocated to companies like Micron, Taiwan Semiconductor Manufacturing Co., Samsung, and Intel. Scott Bessent is also involved in the discussions. While Lutnick drives this initiative, it reflects a long-standing trend of U.S. governments seeking equity stakes for grants. This approach contrasts with past practices, where funding was provided directly to companies without requiring ownership shares. Lutnick believes this new model ensures both national security and economic benefits for America. Softbank recently invested $2 billion in Intel, highlighting the potential for private investment in a company struggling to compete. Lutnick emphasizes that such equity stakes are a necessary component of U.S. investment strategy. However, such arrangements face scrutiny from global leaders. South Korea’s President Kim Yong-beom’s advisor and a chipmaker industry official expressed concerns about these new initiatives on equity ownership. They argue for predictability from the U.S. government in terms of funding to encourage further investments. Taiwan’s Economy Minister, Kuo Jyh-huei, plans to discuss with TSMC, an independent firm, how to move forward with this approach.