TMTPOST -- The   Trump administration may use the   deal   that allows it to take a stake in Intel Corporation   as a   model, and apply it to other   chipmakers that have been granted   funds under a legislation   designed   to reshore   semiconductor   manufacturing.  

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U.S. Commerce Secretary Howard   Lutnick is exploring the federal   government   taking stakes in   computer chip makers   that receive   the   CHIPS and Science Act   of 2022   ( CHIPS Act )   funding   to build   facilities   in the country, Reuters   cited sources on   Tuesday. The report suggested Lutnick is weighing expanding on a plan to receive an equity stake in Intel in exchange for cash grants.

Lutnick   was reported to   be working on how the   U.S. federal government can receive   stakes   in exchange for funds under   the CHIPS   Act   Incentives Program   for companies such as    Micron   Technology, Inc., Taiwan Semiconductor Manufacturing Co.,   ( TSMC )   and Samsung Electronics.  

U.S. Treasury Secretary Scott Bessent is also involved in the CHIPS Act discussions, but   it is Lutnick who   is driving the process,   per the report, noting that   the Commerce Department oversees the $52.7 billion CHIPS Act.

Signed into law in August 2022, the CHIPS Act allocated $53 billion in federal incentives for domestic semiconductor manufacturing and research and development ( R&D ) , of which $39 billion is set aside for a financial assistance program — also called the CHIPS for America Fund — administered by the U.S. Department of Commerce to build new and expand existing semiconductor facilities. Companies are also eligible for a 25% tax credit.

While U.S. and foreign companies with facilities in the United States are eligible for the CHIPS Act, Intel was already deemed as the biggest beneficiary of the federal incentives.

Intel   under the act was awarded $7.9 billion in grants for commercial semiconductor manufacturing and as much as an additional $3 billion for the Pentagon ’ s Secure Enclave program. It also has an option to draw an $11 billion loan under the act.   Memory   chipmaker   Micron   is the second   biggest   U.S. recipient of the   cash funds. Neither   Micron   not TSMC   or Samsung   commented on the   report.

Lutnick earlier   Tuesday   said Intel   must give the U.S. government an equity stake in the company in return for   the funds it was granted under the   CHIPS   Act. He assailed the act   signed by former President Joe Biden for giving semiconductor manufacturers subsidies without any return for U.S.   taxpayers.

"Why are we giving a company worth $100 billion this kind of money? What is in it for the American taxpayer? And the answer Donald Trump has is we should get an equity stake for our money," Lutnick said   in a CNBC interview. "So we ’ ll deliver the money which was already committed under the Biden administration, we ’ ll get equity in return for it."

Lutnick said the plan   to get a stake   would not give the U.S.   governance or voting rights in the company, even though it could make the federal government Intel ’ s largest shareholder.He also signaled President   Donald Trump   could seek clinching   similar   deals   with other recipients of CHIPS   funds.

"The Biden administration literally was giving Intel for free, and giving TSMC money for free, and all these companies just giving them money for free," Lutnick said. "Donald Trump turns that into saying, ‘ Hey, we want equity for the money. If we ’ re going to give you the money, we want a piece of the action. ’ "