The government may take a stake in Intel. But it’s not about making money, Bessent suggests

Treasury Secretary Scott Bessent revealed on Tuesday that the U.S. government is exploring the possibility of acquiring a stake in Intel, a move that comes amidst reports of ongoing discussions. This potential investment would represent a significant shift, allowing the government to engage directly with a private American enterprise. In a morning interview with CNBC, Bessent emphasized that such a deal would focus on strengthening Intel as a key player in the American technology sector rather than seeking financial gain. He clarified that the intention behind the investment would be to stabilize Intel's chip production capabilities within the United States. When questioned about whether this stake would influence U.S. companies to purchase Intel chips, Bessent responded that the aim is not to apply pressure but to support the company’s production efforts domestically. He referred to the possibility of converting grants from the CHIPS and Science Act into equity shares, with reports suggesting the government may consider a 10% stake in the company. Bessent pointed out the national security risks associated with the U.S.'s heavy reliance on Taiwan for chip manufacturing, labeling it a significant vulnerability. He stated, "For national security, we have to stop that single point of failure," highlighting the critical need for a robust domestic semiconductor industry. Intel has refrained from commenting on the speculation surrounding this potential investment, reiterating its commitment to supporting the administration's goals of enhancing U.S. technology and manufacturing leadership. Meanwhile, the White House has indicated that discussions about hypothetical deals should be treated cautiously until formally announced. The backdrop of this development includes recent comments from chipmakers Nvidia and AMD, who committed to contributing 15% of their chip sales in China to the U.S. government for export licenses. If the government proceeds with investing in Intel, it could pave the way for similar initiatives under the Trump administration. These moves align with President Trump's overarching agenda to rejuvenate American manufacturing and reinforce the country's position as a leader in technology, as evidenced by significant investments from major firms like Apple and TSMC to expand their operations in the U.S.