The Trump administration is exploring government equity stakes in major chipmakers including Samsung Electronics, Taiwan Semiconductor Manufacturing Co. and Micron Technology in exchange for billions in federal subsidies, Reuters reported Wednesday.
Commerce Secretary Howard Lutnick is examining how the government can secure ownership positions in companies receiving CHIPS Act funding to build US semiconductor plants, according to a White House official and person familiar with the discussions cited by Reuters. The move expands beyond a planned 10% government stake in Intel that Lutnick announced Tuesday.
The Commerce Department finalized $4.75 billion in subsidies for Samsung, $6.2 billion for Micron and $6.6 billion for TSMC under the previous administration. Much of the funding remains undisbursed, creating leverage for renegotiation.
Lutnick has criticized the Biden administration’s approach, calling the original grants “overly generous” and arguing taxpayers deserve returns on their investment. Treasury Secretary Scott Bessent is involved in the discussions, though Lutnick leads the process, the sources told Reuters.
The equity push reflects President Trump’s preference for government ownership stakes rather than outright grants. Critics have compared the approach to “corporate statism,” questioning whether government involvement could hamper companies’ competitiveness.
Samsung, TSMC, Micron and the White House declined to comment on the Reuters report. TSMC separately declined comment when contacted.
