The Trump administration appears to be making a serious play for a 10% stake in Intel, the past, present & future of U.S. chipmaking. If this merger is approved, the federal government would be the company’s biggest shareholder. Total investment potential is $10.4 billion, as valued against current Intel’s public market valuation. Moreover, it underscores the continued push to fortify American semiconductor manufacturing and enhance our national security.
Intel, to the surprise of many, has emerged as the 2022 Chips Act’s largest beneficiary. That legislation laid out a staggering $39 billion in grants to supercharge semiconductor manufacturing projects across the United States. This legislation is a necessary step to enhance our domestic production capacity. It’s a response to global supply chain disruptions and growing competition from foreign manufacturers. Intel isn’t the only one reaping the rewards of this major piece of legislation. Companies such as TSMC, Samsung, Nvidia, Micron, and GlobalFoundries have all been awarded cash as well.
According to various reports, SoftBank is pouring a whopping $2 billion into Intel’s development. This move is a testament to their deep belief in the company’s long-term outlook. Intel’s CEO, Lip-Bu Tan, engaged with government officials regarding these developments and departed the White House in Washington, D.C., on August 11, 2025.
Donald Trump has already denounced the 2022 Chips Act as the begin of too much government meddling. In fact, earlier this year, he even proposed repealing it. His administration is reportedly still mulling a direct stake in Intel. This move continues a remarkable turn towards establishing government-backed national champions in strategic industries. Analysts agree that this kind of intervention is key not just to Intel’s success, but to the larger picture of U.S. national security.
U.S. Commerce Secretary Howard Lutnick said in June that the administration is doing just that. They are actively renegotiating some currently awarded grants through the 2022 Chips Act to make sure they do more to match strategic goals. This step represents the kind of future, proactive policymaking needed to keep American semiconductor manufacturers competitive in this global race.
The debates over a potential investment in Intel show the challenges involved in putting corporate interests secondary to the demands of the national interest. The U.S. challenges are severe, especially in chip production as the situation is described. Beyond offering financial support to the tech, government ownership could have more direct influence over the sector by guiding research and development priorities.