Trump seeks more government investments like Intel’s
US President Donald Trump says he wants to make more government investments in American companies, similar to the recently announced deal with chipmaker Intel, Reuters reports.
Last week, the White House revealed that the government is taking an almost 10% stake in Intel by converting federal Chips Act grants into equity. On Monday, Trump said he hopes for “many more cases like it” in other sectors.
The move marks a shift from the traditional US economic model, in which government ownership of companies has previously been limited to crises such as the 2008 financial meltdown.
In a post on his platform Truth Social, the president wrote:
“I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All goes to the USA. Why are ‘stupid’ people unhappy with that? I will make deals like that for our Country all day long.”
Critics warn that increased government involvement could limit corporate flexibility and market agility. Some analysts see potential in the model. Shivaram Rajgopal, a professor at Columbia Business School, said a government stake could provide similar advantages to other policy measures that have benefited large companies, such as Amazon's historical sales tax exemptions, Reuters report.
However, the risks were highlighted by Intel itself in a regulatory filing. The company warned that government ownership could harm international sales, complicate future grant applications, and lead to additional regulations.
