Government Doubles Down: Major Stake Expansion to Fortify Intel’s Future

The state just went all-in on silicon sovereignty.

In a move that reshapes the semiconductor chessboard, government entities have significantly increased their holdings in Intel—a strategic play that sends shockwaves through both tech corridors and trading floors. This isn't just an investment; it's a statement of intent for national tech independence.

From Chips to Geopolitical Leverage

The capital infusion bypasses traditional market mechanisms, funneling resources directly into R&D and advanced manufacturing. Think less quarterly earnings call, more multi-decade industrial policy. It accelerates Intel's roadmap for next-gen fabrication plants, cutting reliance on overseas supply chains that have proven fragile.

The Market's Cynical Wink

While long-term visionaries cheer, short-term traders are already pricing in the classic 'government-backed' premium—that magical valuation bump where fundamentals occasionally take a backseat to political will. It's the kind of move that makes pure-play tech investors roll their eyes, even as they adjust their portfolios.

The gambit is clear: secure the foundational layer of the digital age. Because in the race for technological supremacy, controlling the means of compute isn't optional—it's existential. The chips are down, and the house just bought more table.

Government expands stake to strengthen Intel

Over the past year, Trump noted that the United States government has begun purchasing shares of Intel as part of a national strategy to bolster the country’s chip production capacity. Shares are ownership stakes in a company. Shareholders, whether owned by individuals or a government, become part-owners of that company.

After all, the Trump administration plans to take a 10% ownership stake in Intel. As it stands, the government now owns approximately 5.5% of the company’s shares. Additional shares are expected to be acquired in the future. Intel’s stock price has soared since news first circulated about the government’s plan to buy shares. 

Actually, the share price has increased by more than 70% in that time, making each share far more valuable than before. Higher prices bring great cheer for most shareholders, indicating that their shares are now worth more than they once were. President Trump also claimed that the government had made “tens of billions of dollars for the American people” and pointed to the increase in share value.

In August, when the government purchased Intel shares, the package was valued at about $5.7 billion. The value of the shares currently in ownership is just over $11 billion today, still a robust increase but still below “tens of billions.” There is, however, a murkier aspect to the deal as well. 

Additionally, there are certain shares that the government does not currently own, which it could purchase in the future under certain conditions. If the government held all those shares today, the total value of its stake WOULD be approximately $27.7 billion. But as it stands, those shares aren’t fully owned and hinge on future events, so they don’t count yet. 

Intel pushes to recover lost ground with new chips

When Lip-Bu Tan took over Intel in March, he moved swiftly to improve the company. Intel, for years, was the chief creator of chips. However, gradually, it fell behind other chip companies. Some rivals began to win more customers and also to develop more advanced chips more quickly. 

Consequently, the tech firm has been putting in the work needed to pull itself back. A significant change comes with Intel’s development of a new line of computer processors. These are the “brains” inside computers, tablets and even some intelligent machines. At a major industry conference earlier this week, Lip-Bu Tan confirmed that Intel shipped its first sub-2-nanometer 18A chips at the end of 2025, meeting its scheduled timeline. These chips are extremely small and powerful. 

Smaller chips enable devices to run faster, use less energy, and remain cooler. Although this growth is important, Intel still depend on external chip factories for some of its most essential aspects of production. 

Among them is Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, which produces chips for other companies and ranks among the top semiconductor manufacturers globally.

The investment in Intel has also attracted attention from private companies. Nvidia, a global leader in graphics and artificial intelligence chips, and SoftBank Group of Japan have both bought large stakes in Intel worth billions of dollars. 

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