Commerce Secretary Howard Lutnick delivered major news on Friday, confirming that the United States has finalized an investment deal with Intel, securing a 10% ownership stake in the semiconductor powerhouse. This development marks a significant step in bolstering America’s position in global technology amid ongoing concerns about supply chain vulnerabilities and competition from abroad.
The agreement stems from negotiations tied to the 2022 CHIPS and Science Act, which aimed to revitalize domestic chip production. Under the terms, the U.S. gains a nonvoting equity position in Intel in return for federal funding support.
While specific financial details remain under wraps, the move aligns with efforts to ensure taxpayer dollars yield tangible returns for national interests. Intel, for its part, has committed billions to constructing advanced manufacturing facilities in Ohio, with full operations expected by 2030. This follows an $8 billion grant finalized last fall to accelerate those projects.
Lutnick shared the update via a post on X, emphasizing the deal’s importance for economic growth and security.
“The United States of America now owns 10% of Intel, one of our great American technology companies,” he wrote. “This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge. Thanks to Intel CEO Lip-Bu Tan for striking a deal that’s fair to Intel and fair to the American People.”
President Donald Trump had hinted at the arrangement earlier in the week, highlighting it as a way to expand American influence over critical industries. Sources indicate the stake could be valued around $10 billion, reflecting Intel’s substantial market presence and the scale of federal incentives involved. For conservatives, this represents a pragmatic approach to industrial policy—using government resources not for endless subsidies, but to foster self-reliance and protect against foreign dependencies, particularly from China and Taiwan, where much of the world’s chip production is concentrated.
The CHIPS Act itself, passed under a previous administration, has faced criticism for slow rollout and bureaucratic hurdles. Yet under Trump’s leadership, deals like this one demonstrate a renewed focus on execution, prioritizing American workers and innovation. Intel’s Ohio investments alone promise thousands of high-paying jobs in a heartland state, underscoring the administration’s commitment to rebuilding manufacturing at home.
Critics from the left may decry increased government involvement in private enterprise, but proponents argue it’s essential for safeguarding national security in an era of geopolitical tensions. As Lutnick noted, the pact benefits both Intel and the public, positioning the U.S. to lead in semiconductors—a sector vital for everything from consumer electronics to defense systems.
This deal could set a precedent for future public-private partnerships, ensuring that American ingenuity drives global progress while keeping strategic assets firmly under domestic control. With operations ramping up in the coming years, the long-term impacts on the economy and technology landscape will be worth watching closely.
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Author: Publius
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