US considering taking a stake in Samsung in exchange for grants
By ForGeeks
The US government has given multi-billion dollar grants to the world’s largest semiconductor makers, including Samsung, Micron, Intel and TSMC, to encourage the construction of fabs in the country.
The new administration, however, intends to change its approach: according to Reuters, it is considering taking a stake in companies that receive these subsidies. In this way, the U.S. government would effectively become part owner of a small percentage of shares in global tech giants.
The U.S. government is also looking to change its approach, according to Reuters.
U.S. Commerce Secretary Howard Lutnick is already exploring the possibility of the government taking up to a 10% stake in Intel in exchange for support under the CHIPS Act program. The White House has confirmed that talks on the deal are underway.
White House officials have confirmed that negotiations on the deal are underway.
Sources said Latnick plans to expand this to other companies, including Samsung. The South Korean giant previously received a $4.74 billion grant, but the bulk of those funds have not yet been disbursed.
Sources said Latnick plans to expand the practice to other companies, including Samsung.
Samsung has not commented on the situation, but analysts say the move could set off an interesting diplomatic dynamic: given the national security importance of semiconductors, South Korean authorities may not support putting a stake in the largest chip maker in the hands of the U.S. government, even though the two countries have a close alliance.
