WASHINGTON — Shares of major semiconductor companies fell sharply on Wednesday following reports that the Trump administration is considering taking equity stakes in chipmakers in exchange for federal funding awarded under the CHIPS and Science Act.

The market sell-off was triggered by concerns over a potential shift in policy that would see the U.S. government become a direct shareholder in key technology firms. Intel Corp. took the biggest hit, with its shares plunging 7 percent. Other major players also felt the impact, as Micron Technology shares fell by 4 percent and global leader Taiwan Semiconductor Manufacturing Co. (TSMC) saw its stock slide 1.8 percent. Industry giants Nvidia and AMD also registered declines of 0.14 percent and 0.8 percent, respectively.

The market reaction followed a Reuters report on August 20, citing a White House official and another anonymous source, which detailed a plan being developed by Commerce Secretary Howard Lutnick. The plan would involve the U.S. government receiving equity in Intel and other major recipients of CHIPS Act grants. Micron, TSMC, and Samsung are among the companies that have received or are slated to receive billions in such funding.

While the White House and Department of Commerce did not immediately respond to requests for comment, Secretary Lutnick confirmed the administration’s intention for Intel on Tuesday. He stated that President Donald Trump believes the United States should “get the benefit of the bargain” from its investments.

“We should get an equity stake for our money, so we’ll deliver the money which was already committed under the Biden administration,” Lutnick told CNBC. “We’ll get equity in return for it, get a good return for the American taxpayer rather than just giving grants down.”

Lutnick clarified that any federal investment would not result in the government obtaining a voting stake or governance rights over Intel’s operations.

The CHIPS and Science Act, signed into law by President Joe Biden, was designed to boost domestic semiconductor manufacturing with billions of dollars in federal grants. Intel was a primary beneficiary, awarded nearly $11 billion, with TSMC receiving $6.6 billion and Micron $6.1 billion.

During a press briefing on August 19, White House Press Secretary Karoline Leavitt confirmed that the Department of Commerce is actively “ironing out the details” to secure a 10 percent government stake in Intel. “The president wants to put America’s needs first, both from a national security and economic perspective, and it’s a creative idea that has never been done before,” Leavitt said. She did not confirm if similar equity requests would be made to other chipmakers.

Treasury Secretary Scott Bessent, also speaking to CNBC, framed the move as a matter of national security. He explained that the equity would come from converting existing grants and potentially adding investment to help stabilize Intel and expand chip production within the United States.

“The single point of failure for the global economy is that 99 percent of the advanced chips in the world are made in Taiwan,” Bessent stressed, adding that the government’s goal is not to “take a stake and then try to tap up business.”

TSMC declined to comment on the matter, while Intel and Micron did not immediately respond to requests for comment.

Washington D.C. — Shares of major semiconductor companies fell sharply on Wednesday, August 20, following reports that the Trump administration is considering taking equity stakes in some chipmakers in exchange for federal funding provided under the CHIPS and Science Act.

Intel shares experienced the most significant hit, dropping by 7 percent, while Micron shares fell by 4 percent. Taiwan Semiconductor Manufacturing Co. (TSMC), a key global player, saw its shares slide by 1.8 percent. Other industry giants, Nvidia and AMD, also registered declines, down by 0.14 percent and 0.8 percent respectively.

The market reaction comes after Reuters reported on August 20, citing a White House official and another anonymous source, that Commerce Secretary Howard Lutnick has been working on a plan for the U.S. government to receive equity stakes in Intel and other major recipients of CHIPS Act grants. Micron, TSMC, and Samsung are among the companies that have received or are slated to receive such funding, though the precise size of any potential government stakes remains undetermined.

While the White House and Department of Commerce did not respond to requests for comment from The Epoch Times regarding the report, Secretary Lutnick confirmed the administration’s intention for Intel on Tuesday. He indicated that President Donald Trump believes the United States should “get the benefit of the bargain” rather than simply issuing grants.

“We should get an equity stake for our money, so we’ll deliver the money which was already committed under the Biden administration,” Lutnick told CNBC. “We’ll get equity in return for it, get a good return for the American taxpayer instead of just giving grants away.”

Lutnick clarified that any federal investment would not result in the government obtaining a voting stake or governance rights over Intel’s operations. He did not disclose the proposed total stake in Intel.

The CHIPS Act, signed into law by President Joe Biden, was designed to boost domestic semiconductor production through billions of dollars in federal grants. Intel notably received nearly $11 billion in CHIPS Act grants, with TSMC awarded $6.6 billion and Micron $6.1 billion.

White House press secretary Karoline Leavitt confirmed during an August 19 press briefing that the Department of Commerce is actively “ironing out the details” to secure a 10 percent government stake in Intel. “The president wants to put America’s needs first, both from a national security and economic perspective, and it’s a creative idea that has never been done before,” Leavitt stated, though she did not confirm if similar requests would be extended to other chipmakers.

Treasury Secretary Scott Bessent, also speaking to CNBC on Tuesday, emphasized that the government’s aim is not to “take a stake and then try to drum up business.” He explained that the equity would come through converting existing grants and potentially increasing investment in Intel to help stabilize the company and expand chip production within the United States. Bessent highlighted the national security imperative behind the move, noting that “the single point of failure for the global economy is that 99 percent of the advanced chips in the world are made in Taiwan.”

TSMC declined to comment on the matter, while Intel and Micron did not immediately respond to requests for comment.

D.R. Horton, the largest homebuilder in the U.S., has reported a sharp decline in the housing market, with buyers quickly leaving the sector. This drop comes as the economy already faces challenges from higher interest rates and inflation, further affecting the nation’s financial situation.

The decline is clear in D.R. Horton’s Q4 results. Buyers canceled almost a third of their deals, a jump from 19% last year. Additionally, new orders have fallen by 15% compared to the previous year. In total, the value of the 13,572 homes sold this year has dropped by 10%.

D.R. Horton has had to abandon land deals that no longer meet their standards, resulting in a $34 million write-off for deposits and related expenses. The company is also providing more incentives to sellers to close transactions.

Mortgage rates have greatly impacted the housing market’s decline. The Federal Reserve has raised rates sharply to fight inflation. The average 30-year fixed-rate mortgage now has an interest rate of about 7%, more than double what it was a year ago. This increase has led to a drop in mortgage demand, which is now at a 22-year low.

Homebuilders like D.R. Horton and PulteGroup have reported order cancellations and missed earnings and revenue targets due to the higher mortgage rates, inflation, and economic uncertainty.

The housing market’s decline could affect other industries and the overall economy. Home improvement stores, for example, such as The Home Depot, may experience slower sales as new and existing home sales fall. However, it may take another quarter or two for these effects to be fully seen.

While housing prices will still rise, the pace will be slower due to decreased demand. Despite higher interest rates, average home buyers seeking a place to live may still find buying a home beneficial. They can secure an interest rate before it rises further and refinance when rates drop again. Ultimately, whether to buy a home depends on each person’s financial situation.