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CHIPS Act funding could herald an era where the U.S. is not offering grants, but buying equity
Lutnick expresses interest in turning grants into equity investments.
But, it would come at a great cost: It's unclear what partial state-ownership might look like, and for Intel, it might make some sort of sense, as the U.S. government might be able to assist in attracting large foundry customers. Regardless of how things shake out for the Trump Administration's efforts in seemingly tuning CHIPS Act funds into private equity or partial ownership, it will be a significant uphill challenge, especially considering the number of complexities with the businesses potentially involved. Export controls already prevent selling high-powered AI chips to China ( though B30A is reportedly in the works), and the next on America's hit list may be to nurture its homegrown semiconductor efforts through the use of wanton equity investments, almost behaving like a VC firm, rather than a government.
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