Former U.S. President Donald Trump is reportedly considering plans to push for government stakes in American chip manufacturers that have received funding through the CHIPS and Science Act, according to sources familiar with the discussions. The move highlights growing efforts to ensure that taxpayer-backed subsidies also deliver long-term returns for the U.S. economy.
Building on National Security and Supply Chain Concerns
The CHIPS Act, enacted in 2022, allocated billions of dollars to strengthen domestic semiconductor manufacturing and reduce reliance on overseas suppliers, particularly China. Trump’s team is evaluating whether direct government stakes in supported companies could bolster national security while ensuring accountability in the use of public funds.
Potential Targets and Industry Reactions
Several leading semiconductor firms—including Intel, TSMC’s U.S. operations, Micron, and GlobalFoundries—have already received billions in subsidies. While no final decision has been made, the proposal could involve partial government ownership or equity-like arrangements. Industry executives are watching closely, with some expressing concern that government stakes could complicate private-sector operations.
Political and Economic Implications
If implemented, this approach would mark a major shift in U.S. industrial policy, blending elements of free-market capitalism with state-driven investment. Supporters argue that it could ensure taxpayers benefit directly from corporate profits, while critics warn it may discourage foreign investment or politicize the chip industry.
The Bigger Picture: Competing with China
The U.S. continues to race against China in the global semiconductor arena. By securing stakes in critical technology firms, Washington could strengthen its strategic leverage while fostering innovation. However, the debate over the balance between government oversight and private enterprise is expected to intensify in the coming months.