U.S. Government Considers Federal Stake in Intel to Boost Semiconductor Production
- The U.S. is considering a direct stake in Intel to improve semiconductor production.
- Potential policy shift toward equity investments in tech sectors.
- Intel stock surged 8.9% following the news of discussions.
The Trump administration is considering acquiring a direct federal stake in Intel to boost U.S. semiconductor production, potentially shifting industrial policy as of August 2025.
This strategic move underscores U.S. national security concerns and impacts Intel’s market value, as the stock surged following the acquisition news.
Intel’s Ohio Factory Delays Prompt Federal Talks
Key discussions about a federal stake in Intel involve President Trump and Intel’s CEO, Lip-Bu Tan. The talks follow Intel’s Ohio megafactory delays, requiring strategic government intervention. Intel’s spokesperson declined to comment on specific terms or rumors, keeping the focus on ongoing negotiations, echoing traditional and new policy approaches for supply chain independence.“We need U.S. semiconductor independence to ensure our national security and technology supply chains.” — Donald Trump, U.S. President (2025)
Intel Stock Rises 8.9% Amid Stake Talks
The substantial increase in Intel’s stock price, up 8.9%, highlights market confidence in potential government partnerships to secure supply chains.
The proposal showcases a shift toward government equity involvement in tech industries, mirroring previous rare-earth investment strategies, impacting political approaches to industry support and technological independence.
Comparisons to DoD and MP Materials Investments
This mirrors prior U.S. deals such as the DoD’s preferred shares in MP Materials, reflecting trends in government equity stakes akin to Britain’s golden share practices.
Expectations based on past interventions suggest potential for increased government influence in strategic technology industries, emphasizing historical reliance on such investments during security-driven policy shifts.
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