The U.S. Department of Commerce is considering a deal to take an equity stake in Intel and other tech firms that received grants through the U.S. CHIPS and Science Act. The proposed deal would make the U.S. government Intel's largest shareholder. Taiwan's TSMC also received CHIPS Act funding.
00:00The U.S. Commerce Department is working on a plan to take equity in Intel and other tech firms that received funding under the CHIPS Act.
00:08As for this 10% government stake deal, the Department of Commerce continues to work on it.
00:13It's a creative idea that has never been done before to ensure that we're both reshoring these critical supply chains while also gaining something of it for the American taxpayer.
00:24Former U.S. President Joe Biden signed the CHIPS Act into law in 2022.
00:28But much of its grant funding has not been dispersed.
00:33In an interview on CNBC, U.S. Commerce Secretary Howard Lutnick confirmed that the government is considering a deal that would convert these grants to non-voting shares.
00:43A 10% stake in Intel would make the U.S. government the firm's largest shareholder.
00:48Other companies that received CHIPS Act funding include Towne's TSMC and South Korea's Samsung.
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