<h1>Federal conversion of $11.1B CHIPS funds into 433.3M non-voting shares creates 10% stake, raising conflict and market distortion concerns</h1> The federal government converted $11.1 billion in previously pledged CHIPS and related funds into 433.3 million non-voting shares, giving it a 10% stake in a major semiconductor firm currently undergoing large layoffs and restructuring. The shares carry no voting rights or board representation, but the transaction raises legal and policy issues including potential conflicts of interest, executive influence, market distortion, conditionality of public grants, and national-security arguments used to justify intervention. Critics warn of improper public-private cross-control and pressure on procurement and competition; supporters cite industrial policy precedent and the government's interest in fostering domestic chip manufacturing.