Trump Administration Takes 10% Intel Stake, Signals More Deals Expected

President Donald Trump has embraced a controversial economic strategy involving the U.S. government acquiring equity stakes in major companies like Intel through the CHIPS Act, marking a significant departure from traditional Republican free-market principles. The government now holds a 10% stake in Intel, acquired via conversion of sizable grants, making it one of the company's largest shareholders, and Trump has declared his intention to pursue more such deals, including with defense contractors and potentially other semiconductor giants such as TSMC and Samsung. This approach has drawn sharp criticism from free-market conservatives, including Senator Rand Paul, who labeled it a step toward socialism, while others warn it risks politicizing corporate decisions and distorting markets. Supporters, including Senator Eric Schmitt, cite national security concerns, emphasizing the need to protect domestic chip manufacturing capacity. The scale of this public-private equity exchange is unprecedented since the 2008 financial crisis and reflects a broader shift in economic policy under Trump, who also seeks to create a national sovereign wealth fund and has pursued stakes in other companies like rare earth miners and TikTok's U.S. operations. Despite internal GOP unease, the market response to Intel's stock has been positive, and Trump remains committed to expanding this model as part of his economic agenda.