The United States has acquired a 10% stake in Intel Corporation for $11 billion, a move announced by President Donald Trump following negotiations with Intel CEO Lip-Bu Tan.
This unprecedented deal marks a significant government intervention aimed at bolstering the struggling chipmaker and supporting the construction of a new Intel factory in Ohio, touted as the world’s largest chip manufacturing facility. However, the plant’s opening is not expected until the 2030s, raising questions about its immediate impact.
The investment leverages funds from the CHIPS and Science Act, originally initiated under the Biden administration, which had pledged substantial grants to revive U.S. semiconductor production. Trump framed the acquisition as a strategic win, converting these grants into equity to ensure a return for American taxpayers. Yet, Intel’s financial woes cast a shadow over the optimism. The company reported a $2.9 billion loss in the second quarter of 2025 and has cut 15% of its workforce, reflecting ongoing challenges in a competitive market dominated by rivals like Nvidia and TSMC.
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Investors remain skeptical, arguing that government backing alone won’t address Intel’s deeper issues, including an outdated business model and struggles to secure customers for its advanced manufacturing processes. While the Ohio project promises long-term growth, delays and uncertain demand suggest the infusion of capital may not be the panacea the administration hopes for. This deal, while bold, highlights the delicate balance between state support and the realities of a tech giant fighting to reclaim its former glory.
