Intel Shareholders Sue US Over $200 Billion Equity Push in Chips Act Grants
Updated
Updated · Financial Times · Jul 23
Intel Shareholders Sue US Over $200 Billion Equity Push in Chips Act Grants
2 articles · Updated · Financial Times · Jul 23
Summary
Intel shareholders sued the chipmaker’s board and the US government, arguing Washington had no legal authority to demand equity in exchange for Chips Act grants awarded under the Biden administration.
About 30 government deals already span Intel, Westinghouse and smaller critical-minerals and electronics groups, with the Pentagon’s new Economic Defense Unit set up to source transactions worth up to $200 billion.
The legal challenge targets the Trump administration’s use of the Defense Production Act, the Chips Act and other supply-chain laws, which past administrations mainly used for grants, subsidies and loans rather than ownership stakes.
Congress now faces pressure to clarify the rules as it must reauthorize the Defense Production Act by September 30 and is weighing whether to explicitly permit federal equity stakes in strategic industries.
The dispute could shape how Washington backs semiconductors, rare earths and other defense-linked supply chains, balancing national-security investment against risks of favoritism, weak oversight and political patronage.