US Government Considers Investment in Micron, Samsung, and TSMC Alongside Intel

Please note that this article does not constitute investment advice. The author does not hold any positions in the stocks discussed herein.

The Trump Administration’s Expanding Interest in Semiconductor Investments

In a significant development within the technology sector, the Trump administration is reportedly considering acquiring stakes not only in Intel but also in other major semiconductor manufacturers. This includes notable companies such as Micron, Samsung, and TSMC, all of which are establishing substantial manufacturing operations in the United States.

Funding Conversions and Strategic Moves

Recent reports suggest that the administration is seeking to convert a portion of the $7.9 billion in grants awarded to Intel through the CHIPS Act into a 10 percent equity stake in the company. This move aims to incentivize the firm to enhance its chip manufacturing presence on American soil, aligned with the overarching goal of reducing dependency on foreign chip production. However, the $7.9 billion grant alone may not be sufficient to secure such a stake, indicating the need for additional federal support.

Furthermore, it seems the administration plans to implement similar equity conversions for granted funds allocated to Micron, Samsung, and TSMC, as outlined in a report by Reuters.

CHIPS Act funding allocation pie chart under Biden administration.

Current Funding Status and Implications

Although $33.7 billion in funding has been designated under the CHIPS Act for various companies through binding awards, the actual disbursement of these funds has been minimal so far. This situation provides the Trump administration with considerable flexibility for negotiation regarding the proposed conversions into equity with Intel, Micron, Samsung, and TSMC.

To provide context, TSMC has been allocated $6.6 billion, Micron $6.2 billion, and Samsung $4.75 billion in grants under this initiative.

“Non-voting” shares of $INTC says Lutnick. This is good. This is the right way. And it’s delivery of all the funds that the USG had promised, some paid, most unpaid from CHIPS Act. The U. S.kingmaker has spoken. Now who signs up for foundry or pays the tariff or inverse tariff… https://t.co/njVJGerdmC pic.twitter.com/dj3VyZs2LP

— Patrick Moorhead (@PatrickMoorhead) August 19, 2025

Market Reactions and Conclusion

The administration’s apparent strategy to share federal support among leading players in the semiconductor industry may diminish Intel’s unique advantages, which had previously been seen as a benefit of its federal backing. This shift may explain the slight dip in Intel’s stock price during after-hours trading recently.

As these developments unfold, stakeholders within the semiconductor realm should remain vigilant, as the balance of power within the industry may shift significantly based on government funding decisions moving forward.

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