Chipmaker Intel has agreed to hand the US government a 10 percent stake in its business, the company and President Donald Trump announced Friday (22 August), marking an unprecedented federal foothold in the semiconductor giant, NDTV reported.

The Trump administration possibly taking stakes in Intel, TSMC, Micron, and Samsung would raise serious concerns. Government ownership of stocks, with a for-profit goal, can be a slippery slope. In the seven months since President Donald Trump's inauguration, Wall Street's major stock indexes have been taken on quite the ride.

Yet Intel still matters, as Mr Trump’s interest shows. The most advanced chips, vital for smartphones and AI, are now made almost entirely by TSMC. America’s tech giants depend on it. Such reliance on a single supplier—particularly one based in Taiwan—is risky.

The Trump administration is considering taking equity stakes in companies getting funds from the 2022 CHIPS Act but has no similar plans for bigger firms boosting U.S. investments, such as TSMC and Micron,

Intel Corporation's shift to foundry services under CEO Lip-Bu Tan, government support, and market shifts could drive profitability. Click for my INTC update.

Investment banking firm JPMorgan thinks Intel should walk away from the chip-making business, and push into its Intel Foundry business instead.

The Trump administration is backing away from suggestions it could take a stake in TSMC, despite its plans to demand shares in Intel.

TSMC's leadership in advanced chips, global expansion, and AI-driven demand justify its premium valuation and long-term growth potential. Click for more on TSM.

Taiwan Semiconductor Manufacturing Company (TSM) and Micron (MU) may not be required to give up stakes in exchange for their CHIPS Act grants, following some signs of pushback in early talks. “The Administration is not seeking equity stakes in TSMC or Micron,

The agreement for Washington to take a nearly 10% stake in Intel is more than just a bailout for a struggling chipmaker; it is a striking symbol of a new era in American economic policy, one that bears an uncomfortable resemblance to the European state capitalism of the 1960s.

The new funding would be another financial lifeline for Intel, as billions of dollars in investment to expand its contract manufacturing business, which is struggling to compete with Taiwan's TSMC, has strained its balance sheet.