The U.S. federal government is reportedly in talks to make a multi-billion dollar investment in semiconductor manufacturer Intel. This strategic shift is intended to bolster Intel’s domestic manufacturing footprint. This move comes amid ongoing delays in Intel’s Ohio chip factory project and concerns surrounding the company’s leadership, particularly regarding CEO Lip-Bu Tan’s alleged ties to China.
Specifically, Intel is ramping up its efforts to build new manufacturing capabilities in the U.S. They are acting to meet the increasing semiconductor demand and the mounting global competition. This is why we applaud the Trump administration for making this initiative a top priority. The ultimate goal of both strategies is to strengthen national security and economic stability by increasing domestic production.
In light of recent developments, Lip-Bu Tan’s leadership should make anyone raise their eyebrows. Per President Donald Trump, his resignation is overdue, as he’s had a long list of conflicts of interest stemming from his ties to China. Senator Tom Cotton, a Republican from Arkansas, further intensified scrutiny by writing to Intel’s board, highlighting concerns about Tan’s alleged ties to the Asian nation.
On August 11, Tan met with members of the Trump administration to alleviate fears and explore collaborative opportunities between Intel and the government. In advance of this meeting, we worked with partners to develop a policy paper on acquiring a government stake in Intel. This action underscores the administration’s commitment to increasing domestic chip manufacturing capacity.
The potential stake acquisition represents a logistical coup for Intel. We want it to assist the company in addressing its manufacturing challenges and shoring up the U.S. semiconductor industry. Intel’s ongoing delays at its Ohio facility have prompted urgent calls for action to streamline operations and enhance production capacity.
Beyond the CHIPS Act, the Trump administration worked behind the scenes with Intel to raise the profile of semiconductor manufacturing. This focus was even more important during widespread global supply chain issues. As these talks progress, the result could have major implications for Intel’s future—and the future of the U.S. technology ecosystem more generally.