Trump Weighs Taking Stake in Intel in Exchange for Subsidies
Treasury Secretary Scott Bessent emphasized that any investment would aim to help the struggling chipmaker stabilize domestic production.
Quick overview
- The U.S. government is considering acquiring a minority, non-voting stake in Intel as part of subsidies approved under President Biden.
- Commerce Secretary Howard Lutnick emphasized that the investment aims to convert subsidies into equity without exerting control over Intel's operations.
- Treasury Secretary Scott Bessent noted that the stake could help stabilize domestic chip production while avoiding influence over Intel's commercial decisions.
- Discussions suggest a potential 10% equity stake in exchange for $7.9 billion in subsidies to strengthen Intel's role in U.S. chip manufacturing.
The U.S. government is considering acquiring a minority, non-voting stake in Intel as part of subsidies approved under President Joe Biden, according to administration officials.
The move aims to ensure that public funds are converted into equity rather than handed out solely as cash grants.
Commerce Secretary Howard Lutnick said the idea is to secure “capital in exchange for our money,” but stressed that the government does not intend to exert control over the company. “This isn’t about governance — we’re simply turning what was a subsidy under Biden into capital for the Trump administration and for the American people,” he told CNBC.
Lutnick added that the stake would carry no voting rights, preventing Washington from interfering in Intel’s daily operations while still entitling it to financial returns.
Treasury Secretary Scott Bessent emphasized that any investment would aim to help the struggling chipmaker stabilize domestic production without influencing its commercial decisions or forcing other firms to buy its semiconductors.
Amid speculation that the stake could reach 10% of Intel, Bessent noted it would represent a “conversion of the subsidies,” while potentially expanding investment to strengthen Intel’s role in U.S. chip manufacturing.
Details and Context
The discussions follow a Bloomberg News report that cited talks over a possible 10% equity stake in exchange for $7.9 billion in subsidies authorized during Biden’s term. As Lutnick put it: “We should get equity for our money. We’ll receive capital in return, instead of just giving away subsidies.”
The initiative underscores Washington’s push to bolster the domestic semiconductor industry amid heightened competition with China and to ensure that taxpayer-funded investments yield tangible returns.
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