Jenith
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The outgoing United States government committed grants worth billions of dollars to leading semiconductor companies to incentivize them to build manufacturing facilities in the country. Grants were announced for Samsung, Micron, Intel, TSMC, and others.
A new report claims that the current administration doesn't want to give those grants for free, and is reportedly weighing the idea of seeking equity in the company that seek the grant money. If such a deal materializes, the US government would effectively own a small percentage of those global tech giants.
Reuters reports that US Commerce Secretary Howard Lutnick is evaluating the idea of the US government taking ownership stakes in Intel and other chip companies in exchange for the grants awarded under the CHIPS act.
The focus currently remains on Intel, with the White House confirming that a deal is in the works for the government to take a 10% stake in Intel. An unnamed White House official quoted in the report says that Lutnick does plan on expanding this approach to other companies, which may include Samsung.
Samsung was awarded a $4.74 billion grant under the CHIPS Act, however, the bulk of the committed funding hasn't been dispersed yet for Samsung or any of the other major companies that got significant grants under this scheme.
Samsung has not commented on this report, but it would be interesting to see how it navigates the proposal if it's put forward by the US government. Since there's a national security dynamic attached to major semiconductor companies, South Korea's government may have its own views on the US taking an equity stake in its biggest semiconductor company, even though the two countries are close allies.
The post US government wants to own a piece of Samsung in exchange for chip grants appeared first on imeisource.
A new report claims that the current administration doesn't want to give those grants for free, and is reportedly weighing the idea of seeking equity in the company that seek the grant money. If such a deal materializes, the US government would effectively own a small percentage of those global tech giants.
Samsung got awarded a $4.74 billion grant
Reuters reports that US Commerce Secretary Howard Lutnick is evaluating the idea of the US government taking ownership stakes in Intel and other chip companies in exchange for the grants awarded under the CHIPS act.
The focus currently remains on Intel, with the White House confirming that a deal is in the works for the government to take a 10% stake in Intel. An unnamed White House official quoted in the report says that Lutnick does plan on expanding this approach to other companies, which may include Samsung.
Samsung was awarded a $4.74 billion grant under the CHIPS Act, however, the bulk of the committed funding hasn't been dispersed yet for Samsung or any of the other major companies that got significant grants under this scheme.
Samsung has not commented on this report, but it would be interesting to see how it navigates the proposal if it's put forward by the US government. Since there's a national security dynamic attached to major semiconductor companies, South Korea's government may have its own views on the US taking an equity stake in its biggest semiconductor company, even though the two countries are close allies.
The post US government wants to own a piece of Samsung in exchange for chip grants appeared first on imeisource.