The United States is exploring an unprecedented step in its push to strengthen domestic semiconductor manufacturing: taking an equity stake in Intel, the country’s largest chipmaker. While the move could reshape the relationship between Washington and the private sector, officials insist it is not intended as a backdoor strategy to boost Intel’s business.
Speaking on CNBC Tuesday, Treasury Secretary Scott Bessent emphasized that the government’s involvement would not include using political pressure to steer contracts toward Intel.
“Yeah, the last thing we’re going to do is put pressure, is to take a stake and then try to drum up business,” Bessent said.
His comments come after reports surfaced that the White House is weighing a deal that could give the US government up to a 10% equity stake in Intel a move that would make taxpayers the company’s largest single shareholder.
A New Approach to the CHIPS Act
The potential investment comes alongside the $10.9 billion in grants Intel is set to receive through the bipartisan CHIPS and Science Act, signed during the Biden administration to boost US-based chipmaking. President Donald Trump and his economic team have criticized the program for handing out money “for free” to private corporations.
Commerce Secretary Howard Lutnick made clear on Tuesday that the Trump administration wants to change that approach by tying taxpayer dollars to ownership stakes.
“America should get the benefit of the bargain,” Lutnick told CNBC. “Why are we giving a company worth $100 billion this kind of money? What is in it for the American taxpayer? The answer Donald Trump has is: we should get an equity stake for our money.”
White House Press Secretary Karoline Leavitt described the plan as “a creative idea that has never been done before” one that ensures reshoring of supply chains while also offering taxpayers a return on investment.
No Golden Share, No Control
Officials stressed that a government stake would not come with voting rights or a so-called golden share, which would allow Washington to exert influence over Intel’s management or board decisions. Instead, the administration views it as a financial transaction: taxpayers provide capital support, and in return, the public gains a financial stake in the company’s future.
This approach mirrors, in some ways, the equity stakes the US government took in banks and automakers during the 2008 financial crisis. However, this case would be different because it isn’t tied to a bailout Intel is not failing but is instead a central player in the strategy to reshore semiconductor production and reduce reliance on Taiwan.
National Security at the Core
Underlying the debate is a matter of national security. Currently, more than 90% of the world’s advanced semiconductors are produced in Taiwan, a geopolitical flashpoint at the center of tensions between the US and China.
Bessent underscored the risk:
“I would say that the single point of failure for the global economy is that 99% of the advanced chips in the world are made in Taiwan. And for national security, we have to stop that single point of failure.”
The administration believes that reshoring production to the US is critical not just for supply chain resilience but also for safeguarding military and technological leadership.
Pushback From Critics
Not everyone agrees with the strategy. The Wall Street Journal editorial board recently labeled the idea of Washington taking an equity stake in Intel as “corporate statism.” Critics argue that government ownership risks blurring the line between free markets and state intervention.
Lutnick dismissed these concerns, stressing that taxpayers should share in the upside of investments rather than simply providing grants.
“We were giving away the money,” he said. “The Biden administration was giving Intel money for free, and giving TSMC money for free. And Donald Trump is saying, ‘Hey, if we are going to give you the money, we want a piece of the action for the American taxpayers.’”
A Historic Deal in the Making
While no official announcement has been made, Trump recently met with Intel CEO Lip-Bu Tan at the White House, signaling high-level interest. On Monday, Intel separately announced that SoftBank would invest $2 billion, further highlighting the company’s position at the center of global chipmaking competition.
If the US government proceeds, the move would mark a historic shift in industrial policy blending elements of free-market capitalism with targeted state ownership. The question for Washington, Wall Street, and Silicon Valley is whether this creative deal will safeguard US semiconductor leadership without politicizing corporate decision-making.
