Intel Secures $8.9 Billion Investment from Trump Administration
Intel has announced a historic agreement with the Trump administration to secure an $8.9 billion investment, funded through the CHIPS grant program, reports 24brussels. The investment will see the federal government acquire common stock in Intel, with $5.7 billion drawn from previously awarded but unpaid grants, and an additional $3.2 billion from a separate Defense Department initiative.
The administration’s approach designates the investment as “passive ownership,” meaning there will be no representation on Intel’s Board or other rights typically associated with governance or information sharing.
Intel’s CEO, Pat Gelsinger, expressed gratitude for the support, stating that the company looks forward to advancing U.S. technology and manufacturing leadership. This agreement marks a significant shift in the terms of the 2022 CHIPS and Science Act, under which Intel had previously received $10.9 billion in grants aimed at enhancing American semiconductor production.
The deal, however, has prompted concern among some Republicans, who argue that it undermines principles of free-market capitalism. Senator Thom Tillis (N.C.) articulated this viewpoint, stating, “I don’t care if it’s a dollar or a billion dollar stake in an American company, that starts feeling like a semi-state owned enterprise, à la [the Chinese Communist Party]. You’re going to have to explain to me how this reconciles with free-market capitalism.”
As the deal unfolds, it raises questions on the implications of government investment in private enterprises, especially in the tech sector, as lawmakers scrutinize the balance between public support and market independence.
