In a notable shift in economic policy, President Donald Trump announced that the United States now owns 10 percent of Intel, a major manufacturer of computer chips. This announcement marks a departure from traditional Republican support for free markets and private enterprise. Trump described the acquisition as a significant achievement, stating, "It was my great honor to report that the United States of America now fully owns and controls 10 percent of INTEL." He claimed that the shares, valued at approximately $11 billion, were obtained at no cost to the government.

Reports indicate that this stake was part of negotiations involving Intel's CEO, Lip-Bu Tan, who faced pressure from Trump due to his connections with China. Trump noted, "I liked him a lot, I thought he was very good. I said, ‘You know what? I think the United States should be given 10 percent of Intel.’ And he said, ‘I would consider that.’" This arrangement is linked to the Biden administration's CHIPS Act, which aimed to incentivize semiconductor production in the U.S. However, critics argue that the act primarily benefited companies already planning to build facilities based on market conditions.

The CHIPS Act included various requirements, such as using U.S.-sourced materials and meeting workforce equity targets. Veronique de Rugy, a senior research fellow at George Mason University, warned that these stipulations could raise production costs and hinder chip manufacturing.

Interestingly, some lawmakers, including Senators Bernie Sanders and Elizabeth Warren, have expressed support for the government's stake in Intel. Sanders has praised the plan, while Warren remarked, "Donald Trump seems to have stumbled on an idea that I pushed years ago." This alignment between Trump and left-leaning politicians highlights a growing trend of government intervention in the economy.

The implications of the government's stake in Intel extend to existing shareholders, who may see their investments diluted as the government gains ownership. Ilya Somin, a law professor at George Mason University, commented on the unusual collaboration between right-wing and left-wing economic policies, stating, "Both favor extensive government control, direction, and — as in this case — even ownership of industry."

The administration's interventionist approach does not stop with Intel. Reports indicate that the federal government has also demanded a 15 percent share of sales from Nvidia and Advanced Micro Devices (AMD) for chips sold to China. This requirement is part of a financial agreement that ties export licenses to the companies' sales, raising concerns about the implications of such government control over private enterprises.