• Howard Lutnick, CEO of Cantor Fitzgerald, has publicly criticized the implementation of the CHIPS Act, calling it mishandled.
  • The Trump administration is considering requiring the U.S. government to take an equity stake in Intel Corp. as a prerequisite for the chipmaker to receive federal subsidies.
  • The potential policy shift has drawn sharp condemnation from Democratic lawmakers, who warn it could undermine the semiconductor industry's resurgence and deter future investment.

Howard Lutnick has added his voice to a growing chorus of concern over the direction of a key U.S. industrial policy. The Cantor Fitzgerald chief executive recently lambasted the handling of the CHIPS Act, specifically citing moves by the Trump administration to require an equity stake in Intel as a condition for the company to receive federal subsidies. This development, first reported by people familiar with the matter, represents a significant departure from the act's original intent and has ignited a fierce debate over the future of U.S. semiconductor policy.

The administration's consideration of taking a direct government stake in the Fortune 100 company is being viewed by many in the industry as a form of "corporate extortion," a term already used by leading Democratic lawmakers. The CHIPS Act, which passed with broad bipartisan support, was designed to insulate and strengthen domestic semiconductor manufacturing against global supply chain vulnerabilities and Chinese competition by offering financial incentives. It has already spurred over $110 billion in private investment. Mandating equity, however, could have a chilling effect, causing chipmakers to reconsider U.S. expansion plans due to the unpredictable financial and operational strings now attached.

Intel, a global leader in chip manufacturing, is in direct negotiations with the administration concerning the terms of the subsidies. The company has been scaling investments in new U.S. manufacturing facilities, partly in response to the initial CHIPS Act incentives. The potential for government ownership introduces unprecedented uncertainty into these capital allocation plans. A spokesperson for Cantor Fitzgerald declined to elaborate beyond Lutnick's public comments, and Intel did not immediately respond to a request for comment on the ongoing negotiations.

The situation remains fluid, but the backlash suggests the administration's new approach faces steep resistance from both Congress and commercial stakeholders. Reversing course on the CHIPS Act's original funding mechanism or imposing equity conditions could ultimately deter industrial investment, making U.S. technology less competitive globally and weakening the very supply chain resilience the act was meant to bolster.