The Trump administration is backing away from suggestions it could take a stake in TSMC, despite its plans to demand shares in Intel.

Investment banking firm JPMorgan thinks Intel should walk away from the chip-making business, and push into its Intel Foundry business instead.

Taiwan Semiconductor Manufacturing Company (TSM) and Micron (MU) may not be required to give up stakes in exchange for their CHIPS Act grants, following some signs of pushback in early talks. “The Administration is not seeking equity stakes in TSMC or Micron,

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The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average have gone for a wild ride since President Trump took office. With Trump's blessing, Commerce Secretary Howard Lutnick is tinkering with the idea of converting CHIPS Act grants into equity in some of Wall Street's leading semiconductor companies.

Yet Intel still matters, as Mr Trump’s interest shows. The most advanced chips, vital for smartphones and AI, are now made almost entirely by TSMC. America’s tech giants depend on it. Such reliance on a single supplier—particularly one based in Taiwan—is risky.

The back-to-back news items signal a public and private sector commitment to domestic semiconductor production and underscore Intel's importance.

The new funding would be another financial lifeline for Intel, as billions of dollars in investment to expand its contract manufacturing business, which is struggling to compete with Taiwan's TSMC, has strained its balance sheet.