Trump Buys 10% of Intel for $8.9 billion via CHIPS Act

- $8.9 billion investment marks first U.S. sovereign wealth fund initiative. - Intel raises concerns over government ownership impacts. The Trump administration has secured a 10% stake in semiconductor giant Intel for $8.9 billion, using CHIPS Act funding and national security budgets for the purchase. Officials revealed this historic move on August 25, 2025, explaining that the administration aims to strengthen U.S. semiconductor supply chains and establish a sovereign wealth fund. This fund will make direct investments in private companies critical to national security. Strategic Vision: Safeguarding U.S. Tech Leadership On August 25, 2025, Cryptopolitan reported that President Trump framed the Intel investment as a turning point in U.S. policy, describing federal-backed equity stakes as vital to protecting supply chain integrity and enhancing U.S. dominance in high-tech sectors. In a statement on August 25, National Economic Council Director Kevin Hassett reinforced this stance, calling the Intel deal a "very, very special circumstance" and hinting at plans to replicate similar initiatives in other industries. Intel’s Response: Risks and Concerns In a securities filing, Intel highlighted significant risks tied to government ownership, fearing a backlash in international markets. The company warned that foreign customers might view U.S. government involvement as interference, which could impact sales. In addition, Intel flagged concerns over diluting shareholder value because the government acquired the 10% stake at a discount to its market price. The company also noted that converting government grants into equity could deter other public-private partnerships and complicate future funding opportunities. Finally, Intel affirmed it had fulfilled its CHIPS Act obligations, signaling hesitation toward further government collaborations. A Bold New Model for Federal Economic Policy This acquisition marks the administration's ambition to overhaul traditional federal funding strategies by opening the door for direct government stakes in strategic industries. Furthermore, the creation of a sovereign wealth fund signals a long-term approach to economic intervention. This strategy targets areas critical to national security and technological leadership and could reshape corporate-government relations.