Bloomberg Businessweek Trump Administration Said to Discuss Taking Stake in Intel
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Aug 14, 2025 In this discussion, Tom Giles, Senior Executive Editor for Global Technology at Bloomberg News, provides insights into the Trump administration's potential investment in Intel to bolster domestic manufacturing. Nicola Willis, New Zealand's Minister of Finance, shares her perspective on the global trade war and the importance of maintaining economic ties. They explore the implications of government stakes in tech, the impact on semiconductor competition, and the dynamics of international economic relations, highlighting a complex landscape of industrial policy and trade.
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Government Stake To Boost Intel's Foundry Push
- The Trump administration is discussing taking an equity stake in Intel to support domestic chip manufacturing and its Ohio foundry plans.
- Such government backing could act like "confidence capital," attracting customers but raises long-term governance concerns.
Active Industrial Policy Versus Free Market
- A government equity infusion differs from traditional subsidies and signals active industrial policy rather than laissez-faire capitalism.
- That shift can realign corporate priorities and may not always match shareholder interests long term.
Subsidies Versus Long-Term Equity Stakes
- U.S. subsidies and incentives are common but differ markedly from direct government equity stakes.
- Direct stakes imply ongoing oversight and potential politicization of corporate strategy.