Washington is reviewing options to acquire equity stakes in foreign chipmakers such as Samsung Electronics and TSMC in return for the federal subsidies.
The US government is reviewing a plan to seek equity stakes in foreign semiconductor firms in exchange for subsidies already committed under the CHIPS and Science Act. Industry sources confirmed that companies such as Samsung Electronics and Taiwan Semiconductor Manufacturing Company (TSMC) are under consideration.
The potential shift in policy comes amid an effort by the current US administration to reframe the disbursement of federal incentives. Commerce Secretary Howard Lutnick suggested that companies receiving billions in subsidies for building chip plants in the U.S. should offer equity in return. The proposal follows through on previous statements from the administration, indicating that public funds should result in financial interest rather than outright grants.
Intel has reportedly finalised a grant of approximately $7.86 billion under the Act. If the proposed equity-for-subsidy formula is applied, the U.S. government would hold a roughly 10% stake in Intel, based on its market capitalisation of around $110.8 billion. TSMC and Samsung, which have been awarded $6.6 billion and $4.75 billion respectively, could be subject to similar evaluations.
Samsung is currently constructing a $37 billion chip plant in Texas, while TSMC is expanding its Arizona facilities. SK hynix is also investing $3.87 billion in an advanced packaging facility in Indiana. These investments were approved under the previous administration without conditions of equity transfer.
Analysts warn that applying such equity conditions retrospectively could introduce policy uncertainty, particularly for foreign firms operating under different legal regimes. While the administration has indicated that equity stakes would not carry governance rights, the potential implications for operational independence remain unclear.
