Original|Odaily Planet Daily(@OdailyChina)
Author|Wenser(@wenser 2010 )
Last August, driven by Trump, the U.S. government converted funds through the "Chips Act," directly purchasing nearly 10% of Intel's newly issued shares (approximately 433.3 million shares) at $20.47 per share. At that time, it was worth less than $9 billion; by early May, less than a year later, as Intel's stock price hit a record high, the total value of these shares had reached $54.1 billion, appreciating by over $45 billion in just seven months.
Mentioning this, Trump couldn't hide his pride and posted: "I made America $45 billion in the last 8 months."
As a capital maestro who doesn't hesitate to "move the stock market by posting," Trump exerts an extraordinary influence on the rise and fall of U.S. stocks. Recently, he has started his performance again—providing a total of $2 billion in funding to 9 quantum computing companies through the U.S. Department of Commerce in exchange for equity. Odaily Planet Daily will provide a brief analysis in this article.
U.S. Government Acts Again, Investing $2 Billion in Quantum Computing
On May 21, the Trump administration announced it would provide a total of $2 billion in funding to 9 quantum computing companies through the U.S. Department of Commerce, in exchange for partial equity. The specific allocation plan is as follows:
- $1 billion will be granted to IBM (IBM) for the operation and development of its independent subsidiary, Anderon;
- $375 million is allocated to chip manufacturer GlobalFoundries (GFS);
- Publicly listed companies D-Wave (QBTS), Infleqtion (INFQ), Rigetti (RGTI) each receive $100 million;
- Private companies Atom Computing, PsiQuantum, Quantinuum (an independent subsidiary of Honeywell-HON) each receive $100 million;
- Startup Diraq is expected to receive $38 million.
According to official documents, this is part of the Trump administration's "active investor" industrial policy, with funding sourced from the R&D allocation of the 2022 CHIPS and Science Act. The Commerce Department emphasized that this is a "portfolio" strategy, covering two quantum wafer foundries and 7 quantum computing companies. It targets various quantum modalities including neutral atom, silicon spin, superconducting, photonic, and trapped ion, addressing key engineering bottlenecks such as device reproducibility, error rates, optical complexity, and cryogenic system integration.
On the day the news was released, the U.S. stock quantum computing sector surged sharply at the market open. Among them, D-Wave Quantum rose 16%, Rigetti Computing rose 14%, Infleqtion's stock rose 25%, Quantum Computing rose 9%, and IonQ rose 3.1%.
It's worth mentioning that among these companies receiving funds, only GlobalFoundries Inc. (GFS) revealed that the equity swap ratio is about 1%. For other companies, whether public or private, it's a minority non-controlling equity stake, and the specific ratios have not been disclosed. Final ratios await formal agreement signing and SEC filing disclosure.
Capital Operations Under the "America First" Strategy
Looking closely at this "investment for equity" operation, it remains an action by the Trump administration under the "America First" strategy.
Previously, U.S. government investments in Intel (INTC), the only fully integrated U.S. rare earth producer MP Materials (MP), Trilogy Metals (TMQ), Lithium Americas (LAC), U.S. Steel, and others were also strategic moves to maintain the advantage of the domestic semiconductor industry chain.
Especially the nearly $9 billion investment in Intel, the Trump administration explicitly stated that this move was to support domestic advanced semiconductor manufacturing in the U.S. and reduce reliance on TSMC. Therefore, the U.S. government's related holdings are passive, with no board seats, and no participation in the company's daily operations or management. They largely follow board votes on most matters.
However, the U.S. government's "equity investment" is not just financial support; it also includes credit endorsement and multi-faceted policy support (such as export licenses, tariff protection). Previously, Intel received strong support from U.S. Commerce Secretary Loutnik after obtaining the government investment. Over the past year, he has repeatedly met with Apple CEO Tim Cook, Tesla CEO Elon Musk, and NVIDIA CEO Jensen Huang, persuading them to cooperate with Intel. With Apple joining, Intel has now established relevant collaborations with all three companies mentioned above.
Shift in Operational Approach Under the CHIPS and Science Act: From Grants to Equity Swaps
The $2 billion in funding for quantum computing-related companies comes from the CHIPS and Science Act, a landmark bipartisan bill introduced by the U.S. government in 2022, officially named the "CHIPS and Science Act of 2022." The total authorized funding of the act is approximately $280 billion over 10 years, for supporting semiconductor industry development and basic science and technology R&D. Its main purpose is to revitalize U.S. semiconductor manufacturing, strengthen scientific research and innovation capabilities, and address competition from other countries in high-tech fields through large-scale investment.
But different from the grant or pure subsidy model during the Biden administration, the Trump administration's operational model is the aforementioned "active investor" model—switching to funding in exchange for minority non-controlling equity stakes. As of May this year, the act has attracted over $645 billion in private investment in semiconductor manufacturing, with over 140 projects and the creation of 525,000 new jobs.
It must be said, while personally calling shots and moving stocks like Dell (DELL), Micron (MU), and Palantir (PLTR), Trump is also promoting U.S. stock market prosperity in the name of U.S. government departments, which is why he repeatedly boasts, "The stock market highs are mainly because of me."
Additionally, it's worth noting that a previous investment announcement from the U.S. Department of Commerce stated, "The CHIPS Research and Development Office continues to solicit proposals from eligible applicants for research, prototyping, and commercial solutions for microelectronics technology in the United States. Eligible applicants should submit applications via Notice 2025-NIST-CHIPS-CRDO-01 on the www.grants.gov website." In other words, the U.S. government's "investment door" remains open. For more information and funding announcements, please refer to official sources.
Of course, the U.S. government invests in a wide range of company fields, also involving critical minerals like electricity and rare earths, new energy sources like lithium batteries, medical supplies, and communication infrastructure. Examples include Westinghouse Electric, Lithium Americas, Trilogy Metals, USA Rare Earth, Vulcan Elements, XLight, L3 Harris Technologies, etc.
Furthermore, U.S. Commerce Secretary Loutnik once revealed to the media that the current administration might take equity stakes in major defense contractors like Lockheed Martin (LMT).
In summary, the various publicly listed companies, critical mineral/rare earth/battery material supply chains, nuclear/small modular reactor (SMR) and advanced nuclear fuel, and other quantum computing targets mentioned above may become the focus of continued investment by the Trump administration in the second half of the year.
