The Trump administration is exploring equity stakes in companies receiving 2022 CHIPS Act funding, but has no plans to do so for major firms like TSMC and Micron, which are increasing U.S. investments, a White House official told Reuters. The official confirmed a Wall Street Journal report stating the administration will not seek equity in semiconductor companies like Micron and TSMC that are boosting investment.
David Shepardson for Reuters:
On Tuesday, U.S. Commerce Secretary Howard Lutnick said the government continued to work on the possibility of taking a 10% stake in troubled chipmaker Intel and suggested it would seek further stakes in other grant recipients.
“If we’re going to give you the money, we want a piece of the action for the American taxpayer,” Lutnick told CNBC.
At a March event with President Donald Trump at the White House, TSMC, which has Nvidia and Apple as key clients, announced plans for the new $100-billion U.S. investment, in addition to $65 billion committed for three manufacturing facilities in the state of Arizona.
Micron boosted its U.S. investment plans in June.
In the past, the U.S. government has taken stakes in companies during periods of economic uncertainty to provide financial support and restore confidence.
MacDailyNews Take: As we wrote earlier this week: “Some companies are too far gone and are just meant to die. Yes, we’re talking about Intel whose ex-CEO Paul Ottelini made a potentially fatal decision not to take up Steve Jobs on his offer to develop the microprocessor for the original iPhone. One big mistake like that can take down a company. Intel is an also-ran today. Propping up such companies with American taxpayers’ money only prolongs the inevitable.”
Death is very likely the single best invention of Life. It is Life’s change agent. It clears out the old to make way for the new. – Steve Jobs
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lol, this is why you don’t make a guy who thinks me know business in any public office.
so here is his thinking you want money from the government ok, you give a stake in your company to the government and a seat on your board. you will need to pay a dividend, and not that chump change apple passes out. real money.
you people do realize it would have been better just to have a tax raise right? you got one anyway.
so now the government will force companies to do business based on whatever they want.
I think Don is uber concerned that one the US’s top 3 tech concerns is related to chips and if the Intel rumor about the CEO has any veracity (Trump’s suspicions are 99% conspiracy at the start and the majority end up containing truth), maybe it’s reasonable our largest/longest & struggling chip producer MIGHT benefit being driven by a source with clear insight of needs and clear assessment per our most significant adversary…who happens to be the most dominant chip producer?
Yes, it portends a veering into socialism, but the lack of a solid US producer, the topic isn’t just business–it has an sovereign/existential factor. Also, the separation btwn military contractors and US govt is distinct in name only and it’s been extant for decades.
… Not the sovereign State is hère the matter: Trump & Co, yes!
1° Discreetly buy Intel shares.
2° Announce an official mass purchase.
3° Resell the mountain of revalued shares.
4° Make a fortune on the back of the State.
Hey: everything is “just business”… isn’t it?
P.S. Don’t forget that this ‘president’ only acts in his own interest…
The 10% share IS NOT personally held and gains WILL NOT be a “fortune made on the back of the State.”
“Discreetly buy Intel shares.” Wtf. You read about it publicly, right?
“Mass purchase” = 10%. “Resell the mountain of revalued shares.” You have interesting math.
“everything is “just business”… isn’t it?” Yes, this is business….a US business that was granted a lot of $$–via CHIPS Act, and the company’s needed tech is uncertain b/c the company is floundering. Utilize the grant via partial stake and any gains b/c of the 10% stake will be a US gain….not the gains of any one person.
How deceptive, or naive to posit such publicly. Because of your unbelievably biased relay of info, I’ll guess you are likely suffering from The Syndrome.
You’re probably fan of Trump’s lies…