Govt rumored to seize control of Intel, stirring stock growth
The US government is investing a substantial $8.9 billion in Intel, acquiring a near 10% stake in the company [1][3][4]. This investment, largely funded by previously awarded but unpaid grants under the Biden administration’s CHIPS and Science Act and related programs, marks a significant public-private partnership in the chip sector.
The news of this investment caused Intel's stock to surge more than 7%, reflecting positive investor sentiment [2]. This move comes amid Intel's ongoing restructuring and efforts to catch up with competitors in the semiconductor market, particularly in the business of chips for artificial intelligence.
The government's stake in Intel is described as passive, with no voting or governance rights [1][4]. Operationally, the investment supports Intel’s large-scale expansion and emphasizes national strategic interests in semiconductor manufacturing and technology security, a key goal of the CHIPS Act. Intel has emphasized collaboration with the government to advance U.S. technology and semiconductor manufacturing leadership.
However, it is important to note that this investment does not provide any immediate solutions to Intel's financial stability or market position, as the plans for the investment are still in flux [1][2]. The exact nature of the recommendations presented by Intel CEO Bob Swan to government officials remains unclear [5].
This investment represents a bold step towards strengthening U.S. technological competitiveness in the chip sector. Despite Intel's recent struggles, layoffs, and leadership controversies, the government's endorsement is seen as a confidence boost by the stock market.
[1] Bloomberg, "U.S. to Invest $8.9 Billion in Intel, Boosting Shares and Supporting Expansion", August 2025. [2] Reuters, "Intel Shares Surge on News of US Government Investment", August 2025. [3] CNBC, "US Government to Acquire $8.9 Billion Stake in Intel", August 2025. [4] White House Press Release, "Investing in America's Future: Strengthening U.S. Technology and Semiconductor Manufacturing Leadership", August 2025. [5] The Washington Post, "Trump Announces Intel CEO Bob Swan to Present Recommendations to Government Officials", July 2025.
Read also:
- Trade Disputes Escalate: Trump Imposes Tariffs, India Retaliates; threatened boycott ranges from McDonald's, Coca-Cola to iPhones
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
- Celebrated Title: Cheesemakers Blessed Upon
- Construction and renovation projects in Cham county granted €24.8 million focus on energy efficiency
