The US government’s acquisition of a 10% stake in Intel has sparked concerns about the shift in relationship between government and private enterprise under President Trump’s economic strategy. The deal, announced on Friday, is the most notable intervention in private business since the 2008 financial crisis.
Trump’s pledge underscored a significant shift towards nationalizing certain industries and technologies. The White House expressed new fervor for the importance of semiconductors to the economy and Intel’s unique position in the market. However, this move has raised questions about the risks of government intervention in free markets and taxpayer money.
Critics argue that the deal may lead to “corporate shakedowns” where businesses base their decisions on political considerations rather than sound business practices. The Trump administration claims that the move is warranted due to Intel’s importance in the industry, but some experts warn that this could be a recipe for disaster if the government doesn’t exit arrangements with struggling companies.
The $8.9 billion investment in Intel comes without conditions, contrary to President Biden’s CHIPS Act, which aimed to ensure domestic chip production. This move has sparked alarm among competitors, who wonder if they will be next. Industry executives are waiting to see how the Trump administration puts its plans into practice.
Source: https://www.nytimes.com/2025/08/25/us/politics/trump-intel-economy-strategy.html