Trump’s Bold Move: US Aims to Dominate Semiconductor Market with Intel Stake Push
Washington shakes up the chip wars—Trump administration pushes for strategic Intel stake to reclaim US semiconductor supremacy.
Why it matters: The global tech cold war just got hotter. With China and Taiwan controlling critical supply chains, this play could redraw the power map.
Behind the deal: No price tag disclosed yet, but insiders whisper it’ll make the CHIPS Act funding look like pocket change. Wall Street’s already salivating over the potential defense contracts.
The cynical take: Another ‘national security’ power grab that’ll line defense contractor pockets while taxpayers foot the bill. But hey—at least it’s not another crypto crackdown.
Bottom line: Whether this guts TSMC’s dominance or becomes another Solyndra-style boondoggle depends on execution. One thing’s certain—the semiconductor arms race just went nuclear.
Semiconductors at the Heart of U.S. Industrial Policy
Intel’s potential deal with the government comes at a critical time for the semiconductor sector. The company has faced significant challenges, losing 60% of its market value in 2024 — its worst year on record. Under CEO Lip-Bu Tan, Intel has struggled to win a foothold in the booming artificial intelligence chip market, a space now dominated by NVIDIA and AMD. At the same time, Intel’s foundry business, designed to manufacture chips for other companies, has yet to secure major clients. A government stake could provide both the financial backing and political support needed to complete delayed projects like the multibillion-dollar manufacturing complex in Ohio. That site, once slated to produce chips by 2025, may now be pushed into the 2030s without new funding.
Intel’s High Stakes in America’s Semiconductor Ambitions
A stake from the TRUMP administration could mark a turning point for Intel. The company remains central to U.S. technology policy because of its advanced chipmaking capabilities on domestic soil. Trump’s meeting with Tan at the White House earlier this week signals a willingness to work with Intel despite earlier calls for his resignation over alleged ties to China. The Ohio project, projected to reach up to $100 billion in investment, is part of a broader effort to compete directly with global leaders like TSMC and Samsung. The administration’s involvement could also reassure investors after Intel’s volatile performance. Shares have already surged 7% on the news, adding to a 19% gain for the year.
Semiconductors and National Security Strategy
For Trump, semiconductors are not just an economic priority — they are a matter of national security. The U.S. has increased its stake in critical industries, taking a “golden share” in U.S. Steel and investing $400 million in rare-earth miner MP Materials. Now, the administration’s semiconductor focus is becoming even sharper. Restricting the FLOW of advanced chips to China while strengthening domestic production could reshape global tech competition. Intel, NVIDIA, and AMD are all part of this strategy, with new policies tying corporate profits directly to U.S. geopolitical goals. If successful, the approach could create a secure and self-reliant American chip supply chain for decades.
The Road Ahead for Intel and U.S. Chip Leadership
Intel’s turnaround is far from guaranteed, but the Trump administration’s interest suggests the company will remain at the center of U.S. semiconductor policy. The challenges are significant: delayed facilities, missed AI opportunities, and stiff competition from NVIDIA, AMD, and global manufacturing leaders. However, government investment could speed up production timelines, modernize manufacturing capabilities, and attract new clients to Intel’s foundry business. More importantly, it could cement the U.S. as a dominant force in chipmaking at a time when global supply chains are fragile. For Trump, success WOULD mean not only reviving Intel but also securing America’s place at the top of the semiconductor industry.
