The US government plans to take an equity stake in Intel in exchange for CHIPS Act grants that were already committed. A roughly 10 percent share was previously discussed. The equity-for-grants arrangement aims to help fund construction and maintenance of US semiconductor fabrication plants that require billions in investment. Keeping Intel financially stable is framed as a national security priority to reduce reliance on foreign chipmakers. Some analysts and economists warn that government ownership could create conflicts of interest and may not produce the intended domestic industry outcomes. Past federally-led industrial investments are cited as examples of programs that ultimately failed.
"We should get an equity stake for our money, so we'll deliver the money which was already committed under the Biden administration," Lutnick said. "We'll get equity in return for it."
"It's not the right policy to have the US government own things, to have privatization in reverse," says Stephen Moore, a visiting fellow at The Heritage Foundation and a former senior economic advisor to Trump's 2016 campaign. "That's similar to Europe's industrial model, and we haven't done that often here in the US because a lot of it ends up failing."
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