The Trump administration is negotiating a bold plan to acquire a 10% equity stake in Intel, potentially transforming the struggling chipmaker into the U.S. government’s largest shareholder, as part of a strategy to elevate national security through semiconductor capabilities.
Commerce Secretary Howard Lutnick argues that taxpayers deserve a return on their investment through the CHIPS Act, pushing back against the notion of corporate welfare for big companies like Intel.
Compounding this effort, Japanese tech giant SoftBank has injected $2 billion into Intel, signaling confidence in its potential resurgence amid fierce competition from industry leaders like Nvidia and TSMC.
Following SoftBank’s investment, Intel’s stock surged, reflecting market optimism about the company’s prospects for stabilizing and growing its customer base.
However, concerns linger about Intel's management and performance, as pressure mounts from both government interests and investor expectations for a turnaround under CEO Lip-Bu Tan.
This dual infusion of funding from public and private sources emphasizes Intel's pivotal role in revitalizing U.S. semiconductor manufacturing, amidst a backdrop of global supply chain challenges and technological competition.