Overview

• Commerce Secretary Howard Lutnick said the administration is negotiating to convert previously committed CHIPS Act funds into a nonvoting equity stake in Intel, with the White House confirming talks for up to roughly 10%.
• Officials are evaluating similar equity-for-grants terms for other CHIPS recipients, including Micron, TSMC and Samsung, according to multiple reports.
• Stocks fell on the news as investors assessed dilution and policy risk, with Intel sliding about 7% intraday and broader chip and tech indexes declining.
• Senator Bernie Sanders endorsed the plan as a way to deliver returns to taxpayers, while some conservatives criticized it as government overreach, underscoring unusual political crosscurrents.
• Intel has received only part of its CHIPS awards due to milestone conditions, and it recently secured a $2 billion investment from SoftBank as negotiations with the government continue.