U.S. Takes 10% Stake in Intel in Unprecedented Industrial Policy Shift

The U.S. government will acquire a 10% stake in Intel through an $8.9 billion investment, repurposing previously awarded grants rather than injecting new capital. This marks one of the most significant federal interventions in corporate America since the 2008 financial crisis. President TRUMP hailed the deal as a victory for domestic chipmaking, while Intel emphasized the funding stems from Biden-era initiatives like the CHIPS and Science Act.

Washington's MOVE signals a willingness to transcend traditional subsidies and embrace direct ownership—a stark departure from recent industrial policy. The arrangement includes warrants for an additional 5% stake if Intel loses control of its foundry business, further expanding the government's potential influence. Taxpayers face no immediate cost, as the equity conversion leverages existing grant commitments.

Despite the infusion, Intel continues to grapple with market pressures in the competitive semiconductor landscape. The deal underscores growing bipartisan recognition of chip manufacturing as critical infrastructure, with both administrations contributing to this strategic realignment through different mechanisms.