US Treasury Signals Possible Equity Stake in Intel Amid $10.9B CHIPS Funding

The Trump administration is considering taking a 10% stake in Intel by converting approximately $10.9 billion in federal CHIPS Act grants into equity, potentially making the U.S. government Intel's largest shareholder. Treasury Secretary Scott Bessent emphasized that this move is part of a broader security and economic strategy to strengthen domestic semiconductor manufacturing and reduce dependence on foreign suppliers like China, without pressuring companies to preferentially buy Intel chips. Commerce Secretary Howard Lutnick defended the plan as a way for the U.S. to receive tangible benefits from its investment, rejecting comparisons to state capitalism since the government would not gain voting rights or operational control. The administration has also negotiated a 15% revenue share from Nvidia’s sales to China and acquired a stake in rare earth materials company MP Materials as part of reshoring critical supply chains. Analysts see the government's potential stake as a significant intervention that could help Intel's turnaround and possibly encourage greater engagement with other U.S. tech firms, supporting a broader strategy to establish a domestic semiconductor manufacturing entity. This approach reflects the Trump administration's shift toward securing U.S. technological sovereignty and economic interests amid global supply chain vulnerabilities.