Hassett Reaffirms U.S. Plan to Expand Equity Acquisitions
Sovereign Wealth Fund Strategy May Extend Beyond Semiconductors
Kevin Hassett, Chairman of the White House National Economic Council (NEC), stated on the 25th (local time) that the U.S. government is highly likely to expand its equity acquisitions to other companies, similar to its recent acquisition of shares in Intel.
In an interview with CNBC's "Squawk Box" that day, Chairman Hassett explained that the acquisition of Intel shares was part of the creation of a sovereign wealth fund, stating, "Even if it is not in this (semiconductor) industry, I am confident that more deals will be made in other industries at some point."
Recently, the U.S. government became the largest shareholder of domestic semiconductor company Intel by securing about a 10% stake in exchange for providing subsidies.
Chairman Hassett said, "This is a very special situation due to the massive (subsidy) spending in the semiconductor sector," but also explained, "Since (President Donald Trump) has emphasized since his campaign that the creation of a sovereign wealth fund is a good thing, more deals will follow."
The U.S. government intends to continue acquiring stakes in companies by establishing a sovereign wealth fund. Previously, on the 22nd, President Trump himself mentioned the acquisition of Intel shares and stated that there would be "more such deals," and Chairman Hassett's remarks on this day reaffirmed that stance. This has heightened concerns that the U.S. government may demand stakes in other semiconductor companies receiving subsidies, such as Samsung Electronics and SK Hynix.
However, Chairman Hassett made it clear that even if the government acquires stakes in companies, it will not intervene in management.
He also cited the example of the U.S. government acquiring Fannie Mae and Freddie Mac during the 2008 global financial crisis, emphasizing that acquiring company shares is "not without precedent." He added that this measure, along with tariffs, is a strategy to further encourage companies to relocate more of their production bases to the United States.
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