Intel stake under review after political clash

Trump’s criticism of Intel's chief comes amid debates over national security, CHIPS Act funding, and potential state involvement in a critical tech firm.

US may purchase stake in Intel after Trump attacked CEO

Donald Trump and Intel CEO Lip-Bu Tan reportedly discussed the possibility of the United States taking a financial stake in Intel during a White House meeting. The Wall Street Journal cited unnamed sources and described the talks as exploratory, with Intel branding them as rumors and offering no details on how such a stake would be structured. The discussions follow Trump’s demand that Tan resign, a move framed by a senator’s letter alleging Chinese ties and prompting questions about governance and national security.

Senator Tom Cotton’s letter asks Intel to address potential conflicts of interest and whether any divestments would be required to meet CHIPS Act obligations, noting Intel’s receipt of CHIPS Act funding. It also probes whether Tan disclosed ties to the Chinese government. Intel and Cotton’s office did not comment when contacted. The episode highlights broader tensions between U.S. industrial policy, China concerns, and the private sector’s role in critical supply chains.

The episode puts a spotlight on how policy aims can intrude into boardroom decisions. A government stake would not only reshape governance at a blue-chip company but also test investor confidence and market resilience amid geopolitical frictions. The CHIPS Act framework adds another layer, turning funding into potential leverage or obligation. This is less about a single CEO and more about how Washington intends to balance national security and economic competitiveness with corporate autonomy.

Highlights

The coming days will test how policymakers balance security aims with market realities.