The United States government has made a rare move into the private tech sector. In late August 2025, under former President Donald Trump, the government bought about a 10% stake in Intel, the massive microchip maker. This purchase, valued at roughly $8.9 billion, happened through the CHIPS Act and the Secure Enclave program. It made the government Intel’s largest shareholder.
This decision aims to boost chip production and expand factory capacity right here in the U.S. Mr. Trump pushed for the deal. He wanted to give Intel the money it needs to develop new tech and compete globally. This kind of government involvement in a private company is pretty significant for the U.S.
Normally, the American economic system lets the market decide which companies win and lose. But sometimes, during big crises or wars, the government steps in. Think about when it controlled railroads and telegraphs during past world wars. Or when it bailed out massive companies like AIG, Chrysler, and General Motors during the 2007-2009 financial crisis. These companies were just “too big to fail.”
However, buying a piece of Intel is very unusual. It did not happen during an economic meltdown. The government’s choice came from a need to make more advanced microchips at home. This is a direct response to the intense competition with China over artificial intelligence, or AI. It also helps lower risks in the supply chain.
Experts say the government stepped in because Intel has fallen behind. Asian rivals like Taiwan’s TSMC and South Korea’s Samsung now lead the way in making high-end chips. This is especially true for smartphones and AI tech. Intel has tried hard, but it just hasn’t kept up with these global leaders.
Even so, Intel remains the best bet for the U.S. to regain its top spot in making advanced chips. Jacob Feldgoise, an analyst at the Georgetown University Center for Security and Emerging Technology, shared this view. He points out that other leading U.S. tech companies, like Nvidia and AMD, design popular AI chips. But they don’t have their own factories. Instead, they rely on TSMC to make their chips.