Trump Admin Wants a Slice of Intel: No More Free Money for Chip Giants
The U.S. government is moving to turn Biden-era cash grants into an equity stake in Intel—because handouts without payback are over.
Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent confirmed Tuesday that Washington is negotiating a deal to swap the $7.9 billion in CHIPS Act grants for about a 10% stake in Intel. Lutnick made it plain: “We should get an equity stake for our money…instead of just giving grants away.”
Translation: Welcome to venture capitalism, Uncle Sam edition. Sure sounds like we’re moving to State ownership of the means of production. I think that’s called socialism?
White House Press Secretary Karoline Leavitt said President Trump backs the idea, calling it a “creative” move that serves both national security and economic priorities. “It’s not governance,” Lutnick added (that’s his way of saying it’s socialism, not fascism). “We are just converting what was a grant under Biden into equity for the Trump administration for the American people.” That’s a not-so-subtle dig at Biden for doling out billions with nothing in return.
Intel, meanwhile, is limping. The company posted an $18.8 billion annual loss in 2024—its first red ink since 1986—and has watched competitors like TSMC eat its lunch. SoftBank just threw $2 billion at Intel to keep it afloat. So yeah, the government’s timing here isn’t exactly accidental.
This move is part of a broader Trump playbook: pushing U.S. stakes in critical companies, including proposals involving Nvidia, AMD, and even rare earth producers like MP Materials. The administration insists these deals won’t give Washington control, just a seat at the table—and a cut of the upside when taxpayer money is on the line.
Intel has been on a long downward spiral for decades, and now Uncle Sam wants in. Sounds less like “America First” and more like “We’ll take what’s left.”
Vulture Capitalism…
Source: Reuters