The Lawfare Podcast Scaling Laws: Uncle Sam Buys In: Examining the Intel Deal
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Aug 29, 2025 Peter E. Harrell, an expert in national security policy at the Center for a New American Security, joins Kevin Frazier to dissect the U.S. government's 10% stake in Intel. They discuss the implications for competition and national security, questioning the legality of such government interventions in the tech sector. The conversation also delves into the complexities of the Defense Production Act and the Government Corporation Control Act, addressing transparency and favoritism concerns in semiconductor investments.
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Rare Federal Equity Intervention
- The U.S. acquired a 9.9% stake in Intel, marking a rare government equity intervention in a major private company.
- The move revives historical bailout-era ownership but signals a potentially broader, interventionist industrial policy.
CHIPS Funding Then Company Struggles
- The CHIPS Act originally pledged about $11 billion to Intel for U.S. fabs and secure enclaves tied to defense use.
- Over the following year Intel faced delays, competition, and management turnover before the government announced a 9.9% stake.
Departure From Typical Bailout Practice
- Historically, U.S. equity stakes in companies occurred mainly during bailouts with the intent to exit quickly.
- The Intel filing suggests the government could hold its stake indefinitely, marking a departure from past practice.