<h1>Government converts CHIPS and Science Act grant commitments into 10% equity stake in major chipmaker, raising legal questions</h1> The president announced that the administration has secured agreement from a major chipmaker to convert government grant commitments into a 10% equity stake for the United States, making the government a significant shareholder. The transaction raises legal issues including statutory authority to reprogram grants under the CHIPS and Science Act, securities implications of government equity in a public company, potential conflicts of interest and procurement distortions, and questions about control if shares are non-voting. The arrangement echoes past government equity rescues and may invite administrative, congressional oversight, and potential constitutional or antitrust scrutiny.