Treasury Secretary Scott Bessent said in an interview on CNBC that the Trump administration is considering converting billions of dollars in federal funding awarded to Intel under the CHIPS Act into an ownership stake in the company. The article reports that Intel was awarded nearly Not stated. billion in CHIPS Act funding, a figure the article lists as Not stated. Published reports referenced in the piece say the administration is considering a roughly 10% stake. Bessent characterized the potential conversion as a way to stabilize Intel and support chip production in the United States, saying the stake would be a conversion of grants and might include additional investment.
The article places the possible Intel stake in the context of other recent U.S. actions that Bessent described as security policy. Those actions include the government taking a so-called golden share in U.S. Steel and arrangements with chipmakers that would take 15% of revenues from Artificial Intelligence chip sales to China in exchange for export licenses. Bessent cited vulnerabilities exposed by the Covid-19 pandemic and warned about concentrated global supply chains, arguing the U.S. must on-shore critical industries and counter the technology influence of Chinese vendors such as Huawei. He referenced the Belt and Road initiative while warning against a scenario in which U.S. technology is excluded from global markets.
The article also notes market reaction and related reports. Intel´s stock rose amid speculation about the deal or other cash infusions. It cites former Intel CEO Craig Barrett proposing that Intel customers make large payments to guarantee supply, an amount listed as Not stated in the article, and mentions that Softbank announced it would buy a Not stated. billion stake. Bessent emphasized that the government would not force U.S. companies to buy Intel chips after taking a stake and reiterated concerns that 99% of advanced chips are manufactured in Taiwan, which he described as a single point of failure for national security.
