Planet Money The U.S. now owns a big chunk of Intel. That’s a huge deal.
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Sep 12, 2025 A surprising deal between the U.S. government and Intel has made the state the largest shareholder in a major American company. This move raises eyebrows and sparks debates about the implications of government involvement in business. The discussion delves into the motives behind strengthening domestic microchip manufacturing amid global competition. Guests explore the potential risks and benefits of this unconventional partnership and its alignment with broader economic policies, suggesting a significant shift in how the U.S. interacts with the corporate world.
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U.S. Embracing Industrial Policy
- The U.S. has shifted from background market roles to active industrial policy, using subsidies and deals to boost specific industries.
- This represents a major change in how federal policy tries to shape private-sector outcomes.
How The CHIPS Push Was Negotiated
- The CHIPS Act committed roughly $39 billion and the CHIPS office struck deals with about two dozen firms to build fabs in the U.S.
- Those companies collectively pledged hundreds of billions in private investment tied to milestone-based payments.
Use Milestones To Protect Taxpayer Money
- Attach strict, milestone-based conditions to subsidies to reduce the risk of taxpayer money being wasted.
- Pay out funds stepwise only after factories hit construction and equipment milestones.