intel's future: us government eyes equity in chip deal

2025-08-20 general

Washington, Wednesday, 20 August 2025.
the us government is considering taking a 10% equity stake in intel in exchange for subsidies from the chips act. this move could make the us government intel’s largest shareholder. the government may expand this approach to other chip manufacturers like micron, tsmc and samsung. this strategy aims to bolster domestic semiconductor production. it shifts away from outright grants. it also raises questions about government influence and the autonomy of these tech giants. the trump administration views this as securing taxpayer returns.

government influence on intel

The U.S. government’s potential equity stake in Intel is a significant shift in semiconductor policy [5]. If finalized, the government could become one of Intel’s largest shareholders [1][3]. Howard Lutnick, U.S. Commerce Secretary, stated the government should receive equity in return for the funds [1]. He criticized the prior administration for providing subsidies without expecting returns for taxpayers [1]. However, Lutnick assured that the government would not have voting rights or board seats [1]. This arrangement aims to support Intel’s U.S. chip production [1].

market reaction and softbank’s investment

News of the potential government equity stake initially boosted Intel’s stock, mirroring gains from softbank group’s $2 billion investment [1][4]. Softbank’s investment secured them approximately 2% of Intel’s shares, making them the fifth-largest shareholder [1]. The market views these investments as a sign of confidence in Intel’s potential turnaround [4]. However, after reports of the potential government stake, Intel’s stock experienced a -3.7% dip before recovering due to the softbank news [4]. Softbank’s stock in Tokyo also fell by -4% [4].

chips act subsidies and broader implications

Intel is slated to receive $10.9 billion in total subsidies from the chips act [4]. This includes $7.9 billion in direct subsidies [1][7]. The act aims to incentivize domestic semiconductor manufacturing [3]. Lutnick is considering extending the equity-for-subsidy approach to other companies like Micron, TSMC, and Samsung [2][7]. These companies are set to receive $6.2 billion, $6.6 billion, and $4.75 billion in subsidies, respectively [2][7]. This move could make the U.S. government a significant shareholder in major chip manufacturers [5].

expert opinions and potential challenges

Analysts suggest government support could provide Intel with needed resources to revitalize its foundry business [1]. Intel has faced challenges in the artificial intelligence sector and has struggled to secure major clients for its manufacturing services [1]. David Wagner, an Intel shareholder, expressed reservations about taxpayer money being invested in companies but noted it was preferable to nationalization [1]. Concerns remain about Intel’s product roadmap and customer acquisition for new factories [1]. The equity stake could allow the government to influence company decisions [5].

Bronnen

chip act intel subsidy