White House Confirms Talks on 10% US Stake in Intel to Bolster National Security

The White House confirmed that the U.S. government is discussing the purchase of a 10% stake in Intel, marking a significant move to bolster national security and economic security. The news comes at a time when the global semiconductor supply chain is under threat, and China is seeking to challenge U.S. leadership in that industry.

The potential investment is one part of a larger strategy to protect the technology sector in the United States, Press Secretary Karoline Leavitt said during a briefing on Tuesday. “This initiative is about ensuring that the United States leads the world in semiconductor innovation while protecting our national security interests,” she said.

Intel, one of the world’s largest chip makers, is critical to the production of advanced semiconductors that power everything from smartphones to weapons systems. With rising geopolitical tensions, U.S. officials have expressed growing alarm about reliance on foreign manufacturing, particularly Asia. The government’s effort is part of a broader push to reduce dependence on foreign suppliers and increase chip manufacturing in the United States.

The discussions also underscore the Trump administration’s emphasis on protecting critical sectors. In recent years, the U.S. has pumped billions of dollars toward increasing domestic production capacity under two major acts: the CHIPS and Science Act. Intel’s private sector expansion would be even more correlative with national policy goals if the government held a stake in it.

The potential 10% investment is expected not just to shore up Intel’s fleet of long-term projects but also to bolster the United States in the global race for leadership in semiconductor technology, analysts said. “Semiconductors are the new oil of the digital economy,” one industry expert noted. “Control over chip supply chains means control over future innovation and competitiveness.”

Though the discussions are ongoing, lawmakers from both parties are monitoring them closely. Some have expressed concern about government involvement in private enterprise, while others say the urgency of the semiconductor challenge calls for drastic action.

If completed, the deal would be among the largest moves yet by the American government to directly befriend a private technology company. It would also put the United States in a good position to reassure allies and warn would-be global competitors that the United States will compete and lead in the semiconductor industry for decades to come.