Trump’s Demand to Samsung: If You Got CHIPS Subsidies, Give Me Your Shares

The Trump administration, under the semiconductor law enacted during the Biden administration, is reportedly considering giving subsidies even to foreign companies with factories in the United States—on the condition that they hand over equity stakes. Critics warn this could turn into outright stock expropriation rather than investment.

On the 19th (local time), Reuters, citing White House sources, reported that in addition to Intel, the administration plans to demand shares from Korea’s Samsung Electronics, Taiwan’s TSMC, and America’s Micron in exchange for subsidies.

An anonymous White House source said the plan to receive equity from Intel in return for a $10 billion investment will be extended and applied to companies like Samsung Electronics as well.

Reuters noted that no subsidies have yet been paid.

In this situation, the Trump administration’s stance is essentially: subsidies will be provided as scheduled, but only if shares are handed over.

In the case of Intel, which faces management difficulties, the company may have little choice but to accept the deal reluctantly.

However, Samsung Electronics of Korea and TSMC of Taiwan are not struggling financially. In such cases, demanding shares is an excessive request. If the U.S. government secures equity, it could interfere in corporate management.

Originally, the Biden administration had planned to provide subsidies to encourage foreign semiconductor companies to invest in the U.S.

If foreign firms build semiconductor plants in America, it not only addresses chip security concerns but also brings benefits such as job creation.

The U.S. Department of Commerce created a $52.7 billion semiconductor fund and, before Trump took office late last year, had already allocated $4.75 billion to Samsung Electronics, $6.2 billion to Micron, and $6.6 billion to TSMC.

Now, however, with the change in administration, subsidies are no longer being offered unconditionally—companies are instead being told to hand over equity.

White House spokesperson Caroline Levitt confirmed the push to acquire a 10% stake in Intel, saying: “The President prioritizes U.S. interests from both a national security and economic perspective. To achieve this, we are putting forward creative ideas that have never been tried before.”

From the American viewpoint, it may be a “creative idea,” but for companies like Samsung Electronics it is nothing short of “a bolt from the blue.”

Samsung Electronics has stated it has not received any official notification and is waiting to see how the situation develops, but is surely unsettled. The subsidies they were promised without strings attached now come with conditions.

Breaking promises simply because the administration has changed is not what one expects from the world’s sole superpower.

Even so, Trump is pushing ahead under the banner of “America First,” showing no hesitation in engaging in conduct that would normally be associated with Third World nations.