TMTPOST -- Intel   Corporation shares rallied around 7%   on Thursday after   the   Trump administration confirmed recent   reports about possible government   stake in, and signaled more deals similar to that with Intel   could be followed.

Credit：Intel

U.S. Commerce Secretary Howard Lutnick   on 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 and Science Act   of 2022 ( 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. ’ "

Lutnick also said Washington   wants to reshore some chipmaking for national security purposes.   "We need to make our own chips here. We cannot rely on Taiwan," he said.

Later Tuesday, White House press secretary Karoline Leavitt also   confirmed the Trump administration   is working on   a deal   that could allow the government to take a stake in   Intel. "The president wants to put America's needs first, both from a national security and economic perspective,"   said   Leavitt.

The Trump administration last   Thursday was reported to   be   in talks with Intel to have the U.S.   government take a stake in   the company, and the deal,   if reached, would help re-boost Intel ’ s   long-delayed   factory hub in Ohio.The   government is considering   using at least part   of funds from the CHIPS   Act   for Intel in exchange for a stake in   the   company, Bloomberg reported on Friday.

The   report   indicated possible options include   converting some or all of Intel ’ s existing CHIPS Act   grants into equity, allocating new funding from a broader pool, and   combining Chips Act money with other financing streams.   It noted that   the source of funding remains in   discussion, hinting the   administration   may eventually decide   to   take advantage of other sources.  

Bloomberg cited   sources on   Monday   that the Trump administration is in talks to take a roughly 10% stake in Intel in a deal that would make the U.S. the largest shareholder in the chipmaker. The federal government is mulling an investment that would convert some or all of the grants allocated to the company under   the CHIPS Act, per the report.

Intel   was already deemed as the biggest beneficiary of the federal incentives.   The company   was awarded $7.9 billion in grants under the CHIPS Act   for commercial semiconductor manufacturing and as much as an additional $3 billion for the Pentagon ’ s Secure Enclave program. The combined   $10.9 billion in grants   would equate to a little over 10% of Intel ’ s $103.8 billion market value as of Monday.