Commerce Secretary Howard Lutnick told CNBC the U.S. government wants a stake in Intel in exchange for CHIPS Act grant money promised under Biden.

Intel stock was down 3.9% after Bloomberg reported that the Trump administration could convert Chips Act grants into a 10% equity stake in Intel.

U.S. Commerce Secretary Howard Lutnick is looking into the government taking equity stakes in Intel as well as other chip companies in exchange for grants under the CHIPS Act that was meant to spur factory-building around the country,

Intel Corp. shares jumped in after-hours trading Monday after the chipmaker announced a $2 billion investment by Japan’s SoftBank Group Corp.

Intel stock was rising on the investment from SoftBank, which could bring a major chip-manufacturing customer alongside an injection of funds.

Key Takeaways Intel on Monday said Japanese investment giant SoftBank had agreed to buy $2 billion of the chipmaker's stock, boosting hope on Wall Street that the Trump administration and allies will throw the beleaguered chipmaker a lifeline.