Going all the way back to Alexander Hamilton, government has selectively backed industries and companies.
In late August, the U.S. government agreed to take roughly a 10 percent equity stake in Intel, converting about $8.9 billion of previously committed CHIPS and Secure Enclave funds into shares. This is an unprecedented move that effectively swaps subsidies for ownership.
President Trump's forays into private business appear to be driven by money rather than an overarching plan to bolster American competitiveness.
During an investment conference Thursday, Intel CFO David Zinser also hinted that Intel might seek other external investments.
The deal that struggling chipmaker Intel struck with President Donald Trump to give the U.S. government a 10% stake in the company is still under discussion, the White House said on Thursday.
Intel CFO David Zinser said that the semiconductor giant received $5.7 billion from the U.S. government. The investment is part of the U.S. government's decision last Friday to take a 10% stake in the beleaguered computer chip company.
Intel Corporation (NASDAQ:INTC ) Deutsche Bank's 2025 Technology Conference August 28, 2025 11:45 AM ET Company Participants David A. Zinsner - Executive VP & CFO Conference Call Participants Ross Clark Seymore - Deutsche Bank AG, Research Division Ross Clark Seymore Good morning, everyone.
Intel teams with Acronis to power AI-driven cyber threat detection on endpoint devices while boosting performance and efficiency.
The Trump administration is exploring the possibility of acquiring equity stakes in US defense companies, Commerce Secretary Howard Lutnick said Tuesday, following the government's recent 10% stake in Intel Corp (NASDAQ:INTC, ETR:INL). “They're thinking about it,” Lutnick told CNBC, citing Pentagon leaders, when asked whether the administration is considering stakes in contractors such as Lockheed Martin Corp (NYSE:LMT), Boeing Co (NYSE:BA, ETR:BCO), or Palantir Technologies Inc (NYSE:PLTR).
Intel's strategic importance to US security is now validated by major government backing, supporting the call I made at the start of the year. Wall Street's love of a hedge trade keeps Intel suppressed, but the disconnect with peers won't last for long. Intel's fundamentals, scale, and product capabilities position it for a major re-rating as market perceptions shift.
The US is now the proud owner of 10% of Intel. Donald Trump probably won't stop there.
The market is punishing Intel for losses in its product business, ignoring the growing strategic advantage of its new foundry business. Competitors (TSMC, Samsung) moving fabs to the U.S. neutralizes their price advantage and gives Intel, perfectly adapted to Western costs, a unique "home-field advantage". TSMC's strategy of building a technologically "lagging" fab in the U.S. artificially creates a protected niche for Intel's most advanced chips (18A) in the Western market.