Equity Stakes

The U.S. government is reportedly exploring equity stakes in quantum computing firms in exchange for federal funding, signaling a strategic push to secure leadership in this critical technology. While denied by the Commerce Department, the initial report spurred market gains for companies like IonQ, D-Wave, and Rigetti. This potential move aligns with Washington’s trend of acquiring stakes in companies deemed vital to national security, reflecting concerns about technological competition, particularly with China, and the need to bolster domestic capabilities in strategic sectors like rare earths and semiconductors.

The U.S. CHIPS Act, designed to boost domestic semiconductor manufacturing, may involve the government taking equity stakes in companies like Intel, TSMC, and Samsung in exchange for subsidies. While not actively pursued now, this approach aims to ensure commitment to significant U.S. investments. TSMC, facing substantial U.S. investments, is reportedly prepared to forgo subsidies rather than accept forced equity, viewing the relatively small subsidy amount as less critical to its overall plans.