Shares of major semiconductor companies fell sharply on Aug. 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 dropped by 7 percent, Micron shares fell by 4 percent, and Taiwan Semiconductor Manufacturing Co. (TSMC) shares slid by 1.8 percent on Wednesday. Nvidia and AMD shares also declined, down by 0.14 percent and 0.8 percent, respectively.
Citing a White House official and another anonymous source, Reuters reported on Aug. 20 that Commerce Secretary Howard Lutnick has been working on a plan under which the U.S. government would receive equity stakes in Intel and other recipients of CHIPS Act grants. Micron, TSMC, and Samsung are among the recipients, according to the report, though the sizes of any potential stakes have not been determined….