Washington — US President Donald Trump has taken another unprecedented step to tighten state control over corporate America, announcing that the United States will seize a 10 percent equity stake in Intel, one of the country’s most critical technology companies.
The agreement, unveiled on August 22, transforms billions of dollars in unspent CHIPS Act funds into direct ownership of Intel shares, a maneuver that critics say blurs the line between private enterprise and government power. Trump, who has repeatedly positioned himself as a champion of industrial nationalism, framed the move as essential to restoring “American dominance in semiconductors.”
Under the deal, the government will acquire more than 433 million shares at $20.47 each, amounting to nearly $9 billion in taxpayer-backed investment. The purchase also comes with warrants granting the state an option to increase its stake by another 5 percent if Intel divests its foundry business within five years.
Officials were quick to stress that the shares are non-voting, meaning the government will not directly run the company. But analysts argue that the symbolism of Washington holding such a significant stake in a household-name corporation marks a profound shift in the U.S. economic model. “This is not industrial policy anymore, it’s state capitalism,” one market strategist said, warning that the precedent could shake investor confidence in the world’s largest economy.
The announcement follows Trump’s pattern of aggressive intervention in corporate sectors, from steel to energy to high-tech manufacturing. His administration insists the deal is about national security, ensuring America does not rely on foreign rivals for vital microchips at a time of global supply chain volatility. But critics see it as part of a broader authoritarian playbook: expanding government reach into private industry while consolidating presidential influence over key economic assets.
Even Wall Street reacted cautiously, with Intel’s stock rising slightly on the news before dipping as investors digested the implications. Technology lobbyists expressed unease, suggesting that other firms could soon face similar demands if they accept federal funds.
According to Reuters, the agreement marks a turning point in the relationship between Washington and Silicon Valley, giving the US government a nearly 10 percent equity stake in Intel and instantly making it one of the company’s most significant shareholders. The report noted that the shares, valued at almost $9 billion, are non-voting, but the symbolism is clear: Trump is pushing the boundaries of state involvement in corporate America. Analysts quoted by Reuters warned that the move underscores his escalating willingness to use state power to force private industry into alignment with his nationalist agenda, raising alarms about market distortion and the precedent it sets for future interventions
