Why the US Government Wants Part of Intel in Exchange for CHIPS Act Money

The US government is planning to give money to Intel under the CHIPS Act but with a new twist. Instead of just handing money over, the government wants to get something back: a ten percent share in Intel. This means the government would own a small part of the company in return for its investment.

This idea started with the Trump administration, which believes that if American taxpayers are paying billions to help Intel, they should get something in return. Instead of just gifting money, the government wants to receive non voting shares. These shares would not let the government control Intel but would mean that taxpayers could benefit if Intel does well.

Some officials have pointed out that earlier versions of the CHIPS Act simply gave money to big companies like Intel and TSMC with no expectation of a return. The new approach tries to make sure that the American public gets value for their investment. If Intel’s business grows, these shares could be sold in the future to recover some or all of the money or maybe even make a profit for taxpayers.

There is some debate over whether it is a good idea for the government to own part of private companies. Some say it helps protect national security and supports American technology, while others worry about the government having too much involvement in business. Either way, this plan marks a big change in how the US supports critical industries like chipmaking.

Original article and image: https://www.pcgamer.com/hardware/processors/the-us-government-wants-a-10-percent-stake-in-intel-in-return-for-that-chips-act-cash/