The Trump administration is reportedly expanding its ambitions in the semiconductor industry, moving beyond Intel and considering stakes in Micron, Samsung, and TSMC as well. 
According to Reuters, Washington is exploring the conversion of CHIPS Act grants into equity stakes, effectively turning subsidies into ownership.
Intel had already received $7.9 billion in grants under the CHIPS Act, but that amount alone is insufficient for the government to secure a 10% stake. Additional federal funding would be required, and now the same playbook appears to be aimed at other major chipmakers. TSMC has been earmarked $6.6 billion, Micron $6.2 billion, and Samsung $4.75 billion. Converting those into equity would give the U.S. government a direct financial foothold in each company.
On paper, this marks a dramatic shift. Instead of merely subsidizing production, the U.S. would be entangling itself directly with global chip giants – some of which, like Samsung and TSMC, aren’t even American. For investors, the move signals potential share dilution, which could weigh heavily on valuations. Intel stock has already shown weakness in after-hours trading as news of the plan spread.
The strategy highlights how critical semiconductors have become in the geopolitical contest over technology. Chips are now currency – the leverage point for governments trying to shape global power balances. While the CHIPS Act originally aimed at boosting American manufacturing and securing supply chains, the administration’s push toward ownership suggests a far more interventionist role.
Critics argue that massive dilution of shares could punish investors, especially given the scale of companies like TSMC, whose market cap is more than six times Intel’s. Others question the practicality of investing U.S. taxpayer money into foreign corporations. Still, the underlying reality is that chips have become the foundation of modern economies – and Washington clearly intends to have more than just a passing say in who controls them.