White House Excludes TSMC and Micron from Equity Stake Plans While Targeting Intel

The Trump administration is implementing a new approach to CHIPS Act funding that involves taking equity stakes in certain semiconductor manufacturers while specifically excluding Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) and Micron Technology Inc. (NASDAQ: MU) from this requirement. Commerce Secretary Howard Lutnick confirmed that the government may pursue up to a 10% stake in Intel Corp. (NASDAQ: INTC), arguing that taxpayers deserve financial participation in companies receiving federal support.

This policy shift represents a significant departure from the Biden administration's approach, which limited subsidies to grants without equity requirements. The administration's selective equity strategy comes as TSMC, a critical supplier to major technology companies including Apple and Nvidia, has pledged substantial new investments in U.S. manufacturing. The company committed $100 billion in additional U.S. investments this spring, building upon the $65 billion already allocated to its Arizona fabrication facilities.

According to people familiar with internal discussions, TSMC executives have privately considered returning subsidies if forced to cede equity stakes to the U.S. government. This potential response highlights the delicate balance between federal support and corporate autonomy in the semiconductor industry. The Commerce Department's funding allocations from last year include $6.6 billion to TSMC, $6.2 billion to Micron, and $4.75 billion to Samsung through the CHIPS Act program designed to boost domestic chip production.

Market reactions to the announcement were mixed, with TSMC shares rising 1.3% to $142.68, Micron declining 0.4% to $97.45, and Intel gaining 0.9% to $40.82. The differential treatment of companies based on their ownership structure and geographic headquarters raises questions about how the administration will implement its equity stake policy across the broader semiconductor industry. With much of the $52.7 billion CHIPS Act program remaining unspent, this new equity approach could significantly influence how remaining funds are distributed and what conditions accompany future awards.

The policy development occurs against the backdrop of Micron's expanded U.S. manufacturing plans announced in June, demonstrating the ongoing investment momentum in domestic semiconductor production. The administration's selective equity stance may create different competitive dynamics for U.S.-based versus foreign-owned chip manufacturers operating in the United States, potentially affecting investment decisions and corporate strategies across the global semiconductor landscape.