The U.S. government is reportedly exploring the possibility of taking equity stakes in Intel as part of its efforts to strengthen the domestic semiconductor supply chain. This move comes under the CHIPS and Science Act, a $52 billion program aimed at boosting local chip manufacturing and reducing reliance on foreign suppliers.

Intel at the Center of Washington’s Plans

Intel, the largest U.S.-based chipmaker, is among the biggest beneficiaries of the CHIPS Act subsidies. The company is currently building large-scale manufacturing facilities in Ohio, Arizona, and New Mexico, with billions in federal incentives expected to support the expansion. Officials believe securing equity could give taxpayers a direct return on investment while ensuring accountability.

Government’s Equity Model Under Review

According to sources familiar with the matter, the Biden administration is considering a model where financial assistance to chipmakers—like Intel—could be linked to equity warrants or direct ownership stakes. This approach would not only help fund advanced manufacturing but also allow Washington to share in potential future profits.

Strategic Competition with China

The U.S. push for semiconductor dominance comes amid escalating technology competition with China. Beijing has been investing heavily in its own chip industry, prompting Washington to tighten export controls and encourage domestic production. By securing equity in key companies, the U.S. aims to safeguard national security interests while securing a foothold in the global chip race.

Intel’s Position and Industry Reactions

Intel has not officially commented on the possibility of government equity stakes, but industry analysts suggest such a move could raise concerns over corporate independence. While some experts see it as a bold step toward public-private collaboration, others warn it may blur the line between government policy and corporate decision-making.