The Trump administration has taken an unprecedented step in its bid to make the United States the global leader in artificial intelligence by reshoring semiconductor manufacturing. In late August, the government converted a federal grant for domestic chip production into a 10% equity stake in Intel, with provisions for additional equity if Intel’s ownership of its foundry business falls below 50% within five years.
The move comes as Intel undergoes leadership changes and operational restructuring under CEO Lip-Bu Tan, while scaling back delayed projects such as its $28 billion Ohio plant. Intel’s foundry unit has faced challenges in attracting customers despite receiving $7.86 billion in Chips and Science Act funding last year.
By taking equity, Washington is positioning itself not only as a financial backer but also as a stakeholder in Intel’s turnaround, reflecting broader policy ambitions to secure supply chains and cement U.S. dominance in AI and semiconductor technology.
