Commerce Secretary Explores Government Equity in Chipmakers as Trump Demands Intel CEO Resignation Amid CHIPS Act Delays

Commerce Secretary Howard Lutnick is exploring a new approach for CHIPS Act grants, proposing government equity stakes in major chipmakers like Intel to gain strategic control.

The 2022 CHIPS Act allocated $39 billion to boost U.S. chip manufacturing and reduce Asian reliance. However, substantial funding for major recipients remains undistributed, slowing the program's progress.

Senator Bernie Sanders supports President Trump's plan to convert federal grants for chipmakers, such as Intel, into government equity stakes, aligning with a new approach to industrial policy.

President Trump demanded Intel CEO Lip-Bu Tan's resignation, citing national security concerns over alleged ties to China, adding geopolitical tension to the chip industry.

These developments highlight a significant shift in U.S. industrial policy, moving towards greater government control and oversight in critical sectors like semiconductor manufacturing for national security.