The federal government just made a power play that’s raising eyebrows and stock prices alike. On Friday, the Trump administration dropped a bombshell, announcing a 10% stake in Intel, a move that signals a new era of government involvement in private enterprise. It’s a calculated step, not a reckless gamble, aimed at securing America’s dominance in the semiconductor game.
According to NBC News, this unprecedented deal, valued at roughly $11 billion, positions the U.S. as a key player in Intel’s future amid fierce competition with China in the artificial intelligence sector.
Let’s rewind a bit—two weeks ago, President Trump publicly pressed Intel’s CEO to step down over alleged ties to China. That raised some serious questions about where loyalties lie in the tech world. Turns out, actions have consequences, and this stake might just be the follow-through.
Trump didn’t shy away from taking credit, blasting the news on Truth Social with his signature flair. “It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company,” he declared. Well, if that’s not a mic drop, what is?
But let’s unpack this “great deal” Trump touts—the U.S. didn’t shell out a dime directly for these shares. Instead, the stake comes from $5.7 billion in grants under the 2022 CHIPS and Science Act, plus $3.2 billion from the Secure Enclave program, and $2.2 billion already handed over. It’s a clever use of taxpayer-funded programs, though some might wonder if we’re betting too much on one horse.
Intel, currently valued at $108 billion on the stock market, has been stumbling lately, with shares down 60% from their pandemic highs. The company’s struggles make this government lifeline a double-edged sword—support, yes, but also a tighter grip from Washington. Is this rescue or control?
Historically, the federal government stepping into private business like this is rare outside of crisis moments, like the 2008-2009 financial meltdown bailouts. A 2003 Congressional study warned that such stakes aren’t a “free lunch” and expose taxpayers to risks alongside any rewards. This isn’t exactly a comforting precedent when the economy isn’t in freefall.
Trump’s approach here tosses aside traditional free-market principles, a departure from conservative norms that might make purists squirm. He’s also strong-armed other chipmakers like Nvidia and AMD into paying 15% of certain China sales revenues for export licenses this month. It’s a bold flex of government muscle—patriotism or overreach, you decide.
The administration’s goal is clear: boost U.S. control over semiconductor production as part of a broader national security push in the AI arms race. Chips aren’t just tech—they’re the backbone of our future defense and economy. That’s a mission most Americans can get behind, even if the methods raise a few hackles.
Interestingly, the U.S. won’t seek a seat on Intel’s board and has agreed to vote with the current directors on most shareholder matters, barring a few exceptions. It’s a hands-off stance for now, which might ease concerns about direct meddling. Still, a 10% stake isn’t pocket change—it’s influence.
Adding to the mix, Japan’s SoftBank recently pumped $2 billion into Intel, signaling international confidence in the company’s role in advanced tech innovation on American soil. That’s a nice vote of support, especially when Intel’s been lagging behind rivals. Maybe this is the shot in the arm they needed.
Even some Democrats are on board, with Sen. Mark Warner of Virginia stating, “U.S. leadership is critical for both our economy and national security.” That’s a rare bipartisan nod in these polarized times. But does agreement mean it’s the right move, or just shared desperation?
Warner also cautioned, “Taking an equity stake in Intel may or may not be the right approach, but one thing is clear: allowing cutting-edge chips to flow to China without restraint will erode the value of any investment we make here at home.” He’s not wrong—China’s tech ambitions are a real threat. Yet, government overreach could stifle the very innovation we’re trying to protect.
For now, this $11.1 billion stake—equating to a 9.9% share in a $108 billion company—puts America squarely in the driver’s seat of Intel’s trajectory. It’s a gamble on a struggling giant, one that’s fundamental to our tech future. Will it pay off, or are we just doubling down on a risky bet?
At the end of the day, Trump’s strategy is a wake-up call to those who thought government and business could stay neatly separated. National security and economic dominance are on the line, and this administration isn’t playing nice with outdated hands-off policies. Let’s hope this bold move chips away at China’s edge without cracking our own foundation.
