Ethereum News Today: Trump Seeks Equity Grip on Chip Giants to Fuel AI Era

The U.S. government is expanding its consideration of equity stakes in major chip manufacturers, including Intel, Samsung, and Taiwan Semiconductor Manufacturing Co. (TSMC), as part of the Trump administration's strategy under the CHIPS and Science Act. This approach involves exchanging government funding for equity in these companies, which have received significant subsidies to build chip manufacturing facilities in the U.S. According to sources, Commerce Secretary Howard Lutnick is leading these discussions, with Treasury Secretary Scott Bessent also involved. The Trump administration has indicated support for the idea, viewing it as a way to secure long-term influence over the semiconductor industry while providing financial assistance to domestic and foreign chipmakers [1].

The CHIPS and Science Act was designed to fund advanced research and provide cash subsidies for chip production in the U.S. The Department of Commerce oversees $52.7 billion under this act, with much of the funding yet to be disbursed. Notably, Intel, Micron, TSMC, and Samsung have been among the largest recipients of CHIPS Act grants. In December 2024, the Biden administration finalized $4.7 billion in subsidies for Samsung, $6.2 billion for Micron, and $6.6 billion for TSMC to build chip manufacturing plants in the U.S. However, Lutnick has criticized these grants as "overly generous," leading to renegotiations of the funding terms [2].

Lutnick confirmed on CNBC that the government aims to convert cash grants into non-voting equity stakes for major chipmakers. He emphasized that the goal is not to interfere with the operations of these companies but to ensure a return on the U.S. investment in semiconductor production. This model mirrors the recent approval of Nippon Steel's acquisition of U.S. Steel, where the Trump administration secured a "golden share" to maintain control over critical manufacturing investments [3].

The potential for government equity in chipmakers has sparked speculation about broader implications for the industry. Analysts suggest that this shift could represent a new era of U.S. influence over semiconductor companies, particularly as global demand for AI-driven chip technologies surges. The World Semiconductor Trade Statistics (WSTS) forecasts robust growth in the semiconductor market through 2025 and 2026, driven by AI inference systems and cloud infrastructure. This trend is expected to benefit companies like TSMC, which has also committed to expanding its U.S. manufacturing presence [4].

In parallel to the government’s equity stake discussions, the Ethereum (ETH) market has experienced a recent correction, with price levels testing critical support zones. Tom Lee and Fundstrat’s Mark Newton describe the ETH decline to $4,150 as a necessary step toward a potential rebound, with the price expected to stabilize in the $4,075 to $4,150 range. They suggest this could set the stage for a move toward $5,100. Analysts also highlight whale activity and declining exchange reserves as signs of growing confidence among long-term holders. Meanwhile, the Polymarket data indicates a shift in trader sentiment, with only 26% of bettors currently predicting ETH will reach $5,000 by the end of the month [5].

The Ethereum price decline has coincided with a major staking supply unlock expected in September, adding to macroeconomic uncertainty in the crypto market. According to HashKey Capital’s Xu Han, this exit queue is driven by profit-taking as investors lock in gains near Ethereum’s 2021 all-time high. The recent rise in borrowing rates on platforms like Aave has also reduced the viability of leveraged staking strategies, further contributing to the de-risking trend. With Ethereum's active addresses and network growth metrics declining, analysts are cautiously optimistic about a potential consolidation between $3,900 and $4,400 ahead of key macroeconomic and policy decisions [6].

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[1] Trump has become enamored with the "stock-for-subsidy" concept (https://news.futunn.com/en/post/60846817/trump-has-become-enamored-with-the-stock-for-subsidy-concept)

[2] US government eyes stake in Samsung, TSMC in return for CHIPS Act grants (https://www.kedglobal.com/business-politics/newsView/ked202508200001)

[3] Trump eyes US government stakes in other chip makers (https://www.reuters.com/legal/government/trump-eyes-us-government-stakes-other-chip-makers-that-received-chips-act-funds-2025-08-19/)

[4] US pursuing stake in struggling chipmaker Intel, commerce secretary says (https://www.theguardian.com/us-news/2025/aug/19/intel-stake-trump-chips-science-act)

[5] Tom Lee frames ETH retreat as necessary step toward $5,100 (https://cryptopotato.com/tom-lee-frames-eth-retreat-as-necessary-step-toward-5100/)

[6] Ethereum price at two-week low as $4B supply overhang looms (https://decrypt.co/335938/ethereum-price-two-week-low-4b-supply-overhang-looms)