The US Treasury Secretary Scott Bessent stated on Tuesday that any investment by the United States in Intel will be aimed at helping the chip manufacturer stabilize its chip production in the US. Commerce Secretary Howard Lutnick said the US government hopes to acquire a stake in Intel in exchange for the company’s support for domestic semiconductor manufacturing.
When asked about reports that the US government is considering acquiring a 10% stake in Intel, Bessent said on CNBC’s “Squawk Box” program, “Ownership can be turned into grants, and perhaps there will be increased investment in Intel to help the company grow stably and conduct chip production domestically in the US.”
Bessent did not disclose the scale and timing details of the US government’s stake in Intel, but he said that any investment will not compel US companies to purchase chips from Intel.
Bloomberg reported on Monday that the US government is negotiating the acquisition of a 10% stake in Intel. Bessent’s remarks were the first official response to this report. The White House declined to comment on Monday.
Lutnick stated on another CNBC program that the US has been providing grants “for free” in the past without any return on investment, but President Trump wants to change that.
“The Biden administration is actually giving free money to Intel and TSMC, all these companies are receiving free funds, and Trump has turned this practice into: ‘Hey, we want to exchange this money for equity. If we are going to give you money, we want American taxpayers to get a piece of the pie.'”
“We want Intel to succeed in the US. We want transistors to be manufactured in the US, and we want Americans to do this.” he said.
Lutnick emphasized, “We need to manufacture our own chips in the US. We cannot rely on Taiwan, which is 9500 miles away from us, and only 80 miles away from mainland China. So it’s impossible for 99% of advanced chips to be manufactured in Taiwan. We want to manufacture in the US. This is a key part of our plan. This is part of the agreements we have reached with Japan, and also part of the agreements we have reached with South Korea, with the goal of having the infrastructure and capability to manufacture these chips in the US.”
Over the years, Intel has repeatedly made management mistakes and faced intense competition, with a record loss of $18.8 billion in 2024, the first such loss since 1986. The company is currently dealing with multiple challenges.