US Commerce Secretary Howard Lutnick is exploring the possibility of the federal government taking equity stakes in semiconductor companies that receive CHIPS Act funding to build factories in the US, Reuters reported Wednesday, citing sources.

The idea expands on an existing plan for the US to receive an equity stake in Intel (INTC) in exchange for federal grants, the report said.

Lutnick is looking to apply this approach to other major recipients, including Micron (MU), Taiwan Semiconductor Manufacturing (TSM), and Samsung, Reuters reported. Most CHIPS Act funds have yet to be distributed, the report added.

Treasury Secretary Scott Bessent is also involved in the discussions, sources told Reuters. However, they said Lutnick is the main advocate for the equity-based funding model and that former President Trump supports the idea.

Micron, TSMC, Samsung did not immediately respond to requests for comment.

The Commerce Department oversees the $52.7 billion CHIPS and Science Act, which provides funding for semiconductor research and domestic factory construction.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)