U.S. Invests in Intel: Signaling a Shift in Industrial Policy

The U.S. government has made an unusual move, acquiring a 10% stake in Intel. This marks one of the most significant federal interventions in corporate America for years. President Trump hailed the agreement as a win for Intel and highlighted its positive economic impact. The investment comes with a unique twist: it utilizes previously awarded grants that were not yet fully used by Intel. The government’s new stake is currently worth approximately $11 billion, reflecting this repurposed funding. This intervention signals a departure from traditional subsidies, pushing the U.S. towards direct ownership in strategically important companies.