Commerce Secretary Howard Lutnick told CNBC the U.S. government wants a stake in Intel in exchange for CHIPS Act grant money promised under Biden.

Administration isn’t eyeing equity in semiconductor companies that are increasing U.S. investment like TSMC and Micron, but may take stakes in others.

Last week, the Trump administration said it might take a stake in Intel in exchange for the $10.86 billion in federal grants the company is receiving from the Chips and Science (CHIPS) Act. However, not all companies receiving funds under the same program will need to give up equity,

The Trump administration is considering acquiring equity stakes in US companies which are receiving subsidies from the 2022 CHIPS Act. However, some companies are exempt from this plan.

The Trump administration and Intel Corp. are poised to announce details on Friday of an agreement to give the US government an equity stake in the chipmaker, people familiar with the plan say.

The Commerce Department oversees the $52.7 billion CHIPS Act, formally known as the CHIPS and Science Act. The act, signed into law by then-President Joe Biden in 2022, has provided funding so far for research while also seeking to lure chip production away from Asia and boost American domestic semiconductor production.

The Trump administration has floated plans to reallocate $2 billion in CHIPS and Science Act funding to support critical mineral projects.

The Trump administration is aiming to take an equity stake in Intel, according to US commerce secretary Howard Lutnick. Experts say the unconventional deal could backfire.