Swamp Notes Uncle Sam to become Intel’s biggest shareholder
Aug 29, 2025
In this insightful discussion, Richard Waters, a tech writer at large for the Financial Times, and Michael Strain, Director of Economic Policy Studies at the American Enterprise Institute, dive into the U.S. government's controversial 10% stake in Intel. They explore shifts in Republican views on corporate involvement, the historical context of government intervention, and the potential impacts on free market dynamics. The conversation also touches on the relationships between tech firms and federal contracts, revealing the strategic challenges of navigating this new landscape.
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Subsidies Converted Into Ownership
- The US was already subsidising Intel heavily under the CHIPS Act to rebuild domestic manufacturing capacity.
- Trump's equity stake converts some of that support into an ownership claim rather than pure grants.
Trump Pressured Intel's CEO Directly
- Richard describes how Trump publicly pressured Intel's CEO to secure a deal within days after criticism.
- That personal intervention led to Lipp Bouton meeting the president and the subsequent equity agreement.
Stake Lacks Strategic Framework
- There is no clear mechanism showing how a US equity stake will improve Intel's competitiveness or operations.
- The move appears transactional and lacks a broader strategic framework to restructure or direct the company.
