Written by The Banking Post
US Senator Bernie Sanders on Wednesday endorsed President Donald Trump’s proposal to convert federal subsidies for semiconductor firms—such as Intel’s $10.9 billion award—into government ownership stakes.
“If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return,” Sanders said in a statement to Reuters.
The grants were issued under the 2022 Chips and Science Act, which earmarked $39 billion to strengthen US semiconductor production and reduce reliance on Asia. But the Trump administration is now considering an unprecedented move: taking equity stakes in Intel and other chipmakers in exchange for subsidies, according to sources.
The proposal underscores Trump’s shift toward state intervention, a policy area usually associated with the political left. Since returning to office in January, Trump has struck deals tying government interests directly to corporate revenues and ownership, including:
- Allowing Nvidia and AMD to sell AI chips to China in return for 15% of sales revenues flowing to the US government.
- The Pentagon becoming the largest shareholder in a rare earth mining company.
- Securing a “golden share” with veto rights in Nippon Steel’s acquisition of US Steel.
Sanders noted that he and Senator Elizabeth Warren had previously proposed requiring warrants, equity, or senior debt in exchange for Chips Act awards. “I am glad the Trump administration is in agreement with the amendment I offered three years ago,” Sanders said, arguing taxpayers should not provide “billions in corporate welfare” without a return.
Much of the Chips Act funding for companies including Micron, TSMC, and Samsung has yet to be disbursed.
