Key Takeaway
The US government is considering taking an equity stake in Intel in exchange for grants under the CHIPS Act, as stated by Commerce Secretary Howard Lutnick in a CNBC interview. Lutnick emphasized that the government should receive equity for its financial support, which was previously committed. Earlier discussions suggested a potential 10% stake in Intel. This approach marks a significant shift from traditional funding models, which usually involve grants tied to performance milestones rather than ownership stakes.
The US government is currently considering taking an equity stake in the US-based electronics giant Intel, in exchange for grants that the company was already set to receive under the Biden-era CHIPS Act, as noted by US Commerce Secretary Howard Lutnick in an interview with CNBC.
“We should receive an equity stake for our investment, so we’ll provide the funds that were already committed under the Biden administration,” Lutnick states.
“In return, we’ll obtain equity.”
Previously, the government had been considering a 10% stake in Intel, according to reports.
This arrangement marks a notable shift from traditional government funding models, where grants usually come with performance milestones instead of ownership stakes.
