Back in 2009, the U.S. auto industry was circling the drain. General Motors (GM) and Chrysler had already taken a $17.4 billion bridge loan from President Bush in his final month in office, but it wasn’t enough.
Within weeks of taking over, President Obama approved a $50 billion bailout to keep GM alive, deciding the auto industry was too critical to let collapse.
That move set off a political firestorm. Republicans hammered the White House for overstepping, insisting capitalism means letting failing companies fail.
Fast forward to 2025, and the tables have turned. The economy isn’t in freefall, but Trump is still leaning into direct government involvement in corporate America.
First came the deal with Nvidia (NVDA) and AMD (AMD). The companies could keep selling AI chips to China, so long as Washington got a 15% cut of their revenue.
Now, both The Wall Street Journal and Bloomberg report that the administration is eyeing a stake in Intel (INTC), using leftover CHIPS Act funds to do it. Intel, which has been stumbling badly in the global chip race, is seen as crucial to U.S. semiconductor self-sufficiency.
Talks are still early, and the details aren’t public, but the signal is clear: Washington might become a part-owner of America’s flagship chipmaker.
Intel isn’t commenting beyond boilerplate about being “deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership.”
National security or creeping statism?
The idea has set off fireworks online.
“Every single day, we devolve further into communism,” Spencer Hakimian of Tolou Capital Management posted in all caps after the reports broke.
Even some conservatives who applauded Trump’s chip-export toll are balking. Strategic Wealth Partners CEO Mark Tepper said the Nvidia/AMD deal made sense. “The alternative is no exports.” But Intel? “Capitalism works when business competes, not when it’s coddled.”
$NVDA and $AMD agreed to send 15% of their China revenue to the U.S. government—because the alternative is no exports. But the idea of the government taking a stake in $INTC? I'm not a fan. Capitalism works when business competes, not when it's coddled. pic.twitter.com/is9z2y7wIJ
undefined Mark Tepper (@MarkTepperSWP) August 15, 2025
Libertarian voices piled on too. “More big moves from the supposed anti-socialists,” wrote Scott Lincicome of the Cato Institute.
Wall Street of course, loved it. Intel stock popped 6.3% in early trading Friday before closing up 2.9%.
Not everyone is opposed. With Taiwan Semiconductor Manufacturing Co. (TSM) pouring $100 billion into new U.S. fabs, some argue that relying on a foreign giant won’t cut it for national security.
“There are an unbelievable number of bad takes on $INTC and why we don’t need U.S.-owned and controlled foundries. We do,” said Daniel Newman, CEO of Futurum Group.
He added that TSM may build in the U.S., but “it isn’t homegrown and doesn’t share its best IP. We can’t compromise national security or resiliency here.”
In other words, Intel may be limping, but it’s still America’s chip winning horse. And Trump looks ready to saddle up.
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