The Biden administration has confirmed plans to acquire a 10% equity stake in Intel as part of a broader strategy to strengthen the domestic semiconductor industry. This move aligns with recent efforts to reduce reliance on foreign chip manufacturing and to promote technological sovereignty. According to officials, the US intends to purchase non-voting shares through grants authorized by the CHIPS Act, which aims to support American semiconductor companies and safeguard national security.

Commerce Secretary Gina Raimondo emphasized that this investment would enable the government to participate financially in the growth of key chipmakers while ensuring taxpayers see a return. The approach involves disbursing federal grants only after securing minority stakes, allowing for potential profit-sharing if the companies succeed.

Interestingly, the plan has garnered unexpected bipartisan support, with Senator Bernie Sanders expressing approval. Sanders stated that if federal investments help chip companies turn a profit, taxpayers should benefit from the success, framing it as a fair return on government support. His stance highlights a rare alignment between progressive lawmakers and the current administration on economic and technological issues.

This initiative is viewed by industry analysts as a strategic move to bolster US competitiveness in the global chip market, especially amid ongoing tensions with China and other geopolitical challenges. Experts suggest that such government participation could influence corporate strategies and foster innovation within the American tech sector.

For more information on the US semiconductor strategy and the CHIPS Act, official resources like the Department of Commerce and the White House provide detailed updates and policy documents.

Ethan Cole

I'm Ethan Cole, a tech journalist with a passion for uncovering the stories behind innovation. I write about emerging technologies, startups, and the digital trends shaping our future. Read me on x.com