Taiwan Semiconductor Manufacturing isn't about to become American Semiconductor Manufacturing.

The Trump administration is backing away from suggestions it could take a stake in the Taiwanese company, despite its plans to demand shares in Intel. A government official said that the administration isn't looking to own equity in companies like Taiwan Semiconductor, or TSMC, that are increasing their investments in the U.S., The Wall Street Journal reported.

The reassurance comes after Commerce Secretary Howard Lutnick said this week that the government was seeking a stake in Intel in exchange for the billions of dollars in funding it is set to receive under the Chips Act and mentioned the potential for a similar arrangement regarding TSMC.

The U.S. government taking a stake in the company would have been controversial for the company's Taiwanese shareholders and the self-ruled island's politicians, who are seeking to ensure it doesn't transfer its most advanced technology abroad.

TSMC has already committed to investing $165 billion in the U.S., including building three new chip plants, but its executives had talked about returning subsidies if the Trump administration asked to become a stockholder, the Journal reported, citing people familiar with the matter.

TSMC didn't immediately respond to a request for comment early on Friday. Its American depositary receipts were rising 0.3% in premarket trading.

For Intel, the hope is that it will become more of a priority for the Trump administration when it comes to boosting domestic semiconductor manufacturing. So far Intel's CEO Lip-Bu Tan looks to have fended off initial calls for his resignation from President Donald Trump but it's still not clear what kind of political support the company could receive.

Intel has declined to comment on the possibility of the U.S. government becoming a shareholder. Wall Street analysts have generally seen it as a potential positive, if the administration encourages companies such as Nvidia and Broadcom to use its chip-manufacturing facilities.

"An upside case could potentially come to fruition if the U.S. Government pushes these companies to engage more immediately with Intel on foundry services and this could be part of a broader effort to create the American Semiconductor Manufacturing Corp," wrote UBS analyst Timothy Arcuri in a research note.

Arcuri suggested that in such a positive scenario, Intel could be worth around $40 a share. However, he kept a Neutral rating on the shares with a $25 target price, citing its current lack of earnings power.