Federal Government Considers Expanding Strategic Investments Beyond Semiconductors
White House economic adviser Kevin Hassett announced on Monday that the U.S. federal government could consider taking equity stakes in additional domestic semiconductor businesses—and potentially extend this approach to other strategic industries. This comes on the heels of the government's recently publicized arrangement with Intel, in which the U.S. acquired a stake to support ongoing semiconductor competitiveness and resilience[1][3][4].
Insights on the Intel Deal and the CHIPS Act
Hassett explained that the Intel investment was facilitated by funding provided under the CHIPS Act, which aims to bolster American semiconductor capacity amid global supply chain pressures. The National Economic Council director also clarified that the distribution of CHIPS Act funds is proceeding as planned, highlighting a broader administration focus on technological leadership.
- Hassett likened the government’s stake in Intel to a “down payment on a sovereign wealth fund,” positioning it as a strategic investment in national economic security[2].
- He emphasized that, contrary to some reports, the arrangement allowed Intel easier access to CHIPS Act resources in exchange for U.S. equity, following negotiations led by President Donald Trump and Commerce Secretary Howard Lutnick[2].
Possibility of Crossing into Other Sectors
According to Hassett, the administration is open to replicating the Intel investment strategy in both other U.S. semiconductor firms and additional critical sectors where federal participation could advance national interests and supply chain stability[1][3][4].
- Future investments could help safeguard key technologies and manufacturing capabilities.
- Such measures reflect an emerging pattern of public-private partnership in the face of heightened geopolitical competition.
Context and Industry Reactions
The move to take a government stake in Intel has drawn attention from market analysts and industry observers who note the potential shift toward more direct government involvement in major strategic industries. It is seen as part of a larger policy response to global chip shortages and intensifying rivalry with China for technology leadership.
For more information on the CHIPS Act, semiconductor policy, and other developments, Reuters and other leading news outlets continue to provide updates.
