US push for equity in Intel raises alarm for Samsung Electronics, SK hynix

The U.S. semiconductor policy shift could complicate the global strategies of Samsung Electronics and SK hynix. Yonhap

SEOUL, August 20 (AJP) - The Trump administration is seeking an equity stake in Intel as part of its semiconductor subsidy package, a move that could reverberate across the global chip industry and unsettle South Korea’s Samsung Electronics and SK hynix, both of which are planning major U.S. investments with government support.

White House spokeswoman Karoline Leavitt confirmed Tuesday (local time) that the administration is negotiating for roughly a 10 percent stake in Intel in exchange for a $10.9 billion grant to expand the company’s domestic manufacturing.

“The president wants to put America’s needs first, both from a national security and economic perspective,” Leavitt said at a press briefing.

Commerce Secretary Howard Lutnick described the plan as a straightforward swap: government funding for company shares.

“We should get an equity stake for our money,” he said in an interview with CNBC. “We will deliver the money, which was already committed under the Biden administration. We will get equity in return for it.”

The subsidies stem from the CHIPS Act, a 2022 bipartisan law that set aside $52.7 billion to bolster U.S. semiconductor production. But since taking office, Trump has pushed to toughen the program’s requirements, framing subsidies not only as industrial policy but also as leverage for extracting concessions from chipmakers.

The policy shift could complicate the expansion strategies of Samsung and SK hynix, which have announced tens of billions of dollars in U.S. projects.

Samsung is investing $37 billion through 2030 to build factories and research centers, while SK hynix plans a $3.87 billion artificial intelligence memory packaging facility in Indiana.

Under the Biden administration, Samsung and SK hynix had been awarded subsidies of $4.75 billion and $458 million, respectively. But in June, Lutnick said several semiconductor awards were being renegotiated, casting doubt on those commitments.

Washington has signaled similar intentions in other sectors.

Earlier this year, the U.S. approved Nippon Steel’s acquisition of U.S. Steel only after securing a so-called golden share, giving the government veto power over decisions tied to national security.

Analysts say equity stakes in foreign-owned projects could force Korean companies to align more closely with U.S. supply chains, potentially limiting their flexibility in global operations.

Lutnick sought to play down those concerns.

“It’s not governance,” he said. “We’re just converting what was a grant under Biden into equity for the American people. We have no intention of interfering in day-to-day operations.”

Kim Dong-young davekim0807@ajupress.com