The US government has acquired a 10% stake in Intel, valued at around $10 billion, as part of a deal linked to CHIPS Act grants for boosting domestic manufacturing. This move is seen as a strategic step to ensure US supremacy in critical technologies amid rising Chinese competition and concerns over supply chain security.
The government owns 433.3 million primary shares of Intel stock, valued at $20.47 per share, but the stake is non-voting, meaning the government can't directly meddle in Intel's day-to-day decisions. The stake was funded by converting $8.9 billion in federal grants into equity, including $5.7 billion in CHIPS Act grants and $3.2 billion from the Secure Enclave program.
The deal aims to support a resilient domestic semiconductor supply chain and revive US-based tech manufacturing, with keeping Intel afloat considered essential to US national security and reducing reliance on foreign chipmakers. While some see this move as an overdue industrial policy to strengthen US leadership in semiconductors, others view it as government interference that could distort markets and stifle innovation.
The acquisition highlights the complex intersection of technology, national security, and economic policy, with the US government taking a significant step to bolster its domestic semiconductor industry.
