US eyes Intel stake; Treasury: No business meddling
The United States government is actively exploring the acquisition of an equity stake in Intel, a move confirmed by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick on Tuesday. This extraordinary consideration underscores a significant shift in U.S. industrial policy, driven by national security imperatives and a renewed focus on domestic semiconductor manufacturing. However, Secretary Bessent was quick to clarify that any such stake would not be utilized to “drum up business” for the chipmaker.
The discussions revolve around converting a portion of the substantial grants already allocated to Intel under the bipartisan CHIPS and Science Act into equity. Passed in 2022, the CHIPS Act earmarked approximately $52.7 billion to bolster domestic research and manufacturing of semiconductors, aiming to counter China’s growing influence and fortify American supply chain resilience. Intel is slated to receive around $10.9 billion in these grants for both commercial and military production. Should the conversion proceed, it could result in the U.S. government holding an estimated 10% stake in Intel, potentially making it the largest shareholder.
Treasury Secretary Bessent emphasized that the primary objective of such an investment would be to help stabilize Intel for critical chip production within the United States. He highlighted the national security implications of the current reliance on foreign semiconductor manufacturing, particularly from Taiwan, describing it as a “single point of failure” that the U.S. must address. Echoing this sentiment, Commerce Secretary Lutnick articulated that the Trump administration seeks an “equity stake for our money,” aiming to secure a return for American taxpayers on funds that were previously disbursed as grants under the Biden administration. Both officials stressed that the government’s stake would be non-voting, ensuring it would not confer governance rights or allow interference in Intel’s business operations.
This potential intervention comes as Intel, once a dominant force, has faced considerable challenges, recording an annual loss of $18.8 billion in 2024—its first since 1986—and trailing rivals like Nvidia and TSMC in advanced chip technology. Despite these struggles, Intel remains central to the CHIPS Act’s ambitions, having committed over $100 billion to new chipmaking facilities in the U.S., including significant projects in Ohio and Arizona. Recent developments, such as a 15% staff layoff in June 2025 and calls from President Trump for CEO Lip-Bu Tan’s resignation over alleged China ties, underscore the company’s tumultuous period.
The prospect of direct government ownership, while unusual, has historical precedents, such as the U.S. government’s capital injections into banks and automakers during the 2008 financial crisis. This proposed move has already resonated positively in the markets, with Intel shares jumping by as much as 11% following the reports. Coinciding with this news, Japan’s SoftBank Group also announced a separate $2 billion investment in the chipmaker, signaling renewed investor confidence in Intel’s future, particularly with federal backing. This collective action highlights a growing recognition of semiconductors as critical national infrastructure, moving government involvement from mere subsidies to a more direct, strategic partnership in a bid to secure America’s technological future.