Intel has become the symbol of America’s industrial revival as Washington embraces a more interventionist economic model often described as “state capitalism.” Once seen as the heart of Silicon Valley’s semiconductor dominance, Intel has struggled in recent years against rivals like TSMC and Samsung. Now, with billions of dollars in federal subsidies and strategic government backing, Intel is being positioned as a critical player in the United States’ bid to regain technological self-reliance.

The CHIPS Act and Government Intervention

The U.S. CHIPS and Science Act, a $52 billion program, represents one of the largest federal industrial policy initiatives in decades. Intel has emerged as the biggest beneficiary, with subsidies directed toward building advanced semiconductor plants in Ohio, Arizona, and other states. This push highlights a departure from America’s traditional free-market approach, aligning more closely with China’s state-driven industrial policies—though with democratic oversight.

Security and Strategic Rivalries

Washington’s renewed support for Intel is not just about economics—it’s a national security priority. Advanced semiconductors power everything from smartphones to fighter jets, and U.S. dependence on Asian chipmakers has been seen as a vulnerability amid rising tensions with China. Intel’s role in producing leading-edge chips domestically is viewed as essential to safeguarding supply chains and maintaining technological leadership.

Balancing Public and Private Interests

Critics argue that this model risks entrenching corporate power by funneling taxpayer money into giant companies while smaller innovators are left behind. Supporters counter that Intel’s scale and expertise make it the only American firm capable of catching up with global leaders in advanced manufacturing. The debate underscores the broader question: is the U.S. embracing a new form of state capitalism to compete in a multipolar world?

A Shift in American Economic Philosophy

Intel’s resurgence is not just about one company—it marks a shift in U.S. economic thinking. For decades, Washington avoided industrial policy, leaving growth to markets. Now, geopolitical rivalries and supply chain crises have forced a reassessment. By backing Intel and other strategic players, America is signaling that the era of “pure free markets” in critical industries may be over.