• Trump administration plans more stake acquisitions in private companies following Intel investment.
• The U.S. government took a 9.9% stake in Intel, valued at $8.9 billion.
• Kevin Hassett indicates a possible sovereign wealth fund to manage future investments.
• Intel warns that government ownership may affect future funding opportunities.
• Critics express concerns over the implications of government involvement in business operations.

The Trump administration is signaling a new economic strategy aimed at increasing government stakes in private companies, following a significant investment in semiconductor giant Intel. President Donald Trump, alongside his economic advisor Kevin Hassett, emphasized that the 9.9% stake acquired in Intel—valued at approximately $8.9 billion—may be the first of many similar transactions. Hassett stated, "I'm sure that at some point there'll be more transactions" within the semiconductor industry or other sectors, indicating a shift in how federal investments are approached, according to Times of India and Business Insider.

The investment deal, which involves the U.S. government receiving 433.3 million non-voting shares in Intel, leverages funding from the CHIPS and Science Act—legislation designed to bolster domestic semiconductor production—passed during Biden’s presidency. Hassett remarked on the importance of this investment strategy by saying it contrasts past practices where “the federal government has been giving money away.” Instead, he noted that the government plans to remain uninvolved in the operational decisions of these companies, according to Bangkok Post and Business Insider.

Trump's administration views the Intel investment as part of a broader vision for a U.S. sovereign wealth fund, which could facilitate long-term investment and returns. Trump criticized previous federal grant strategies, expressing his intent to strengthen the American economy through these types of deals. He underscored his commitment to developing similar agreements by stating that he hopes "to have many more cases like it," reflecting a prospective strategy to enhance U.S. taxpayer equity in private firms, especially amid national security concerns regarding semiconductor imports, as reported by Times of India and Bangkok Post.

However, Intel has expressed concerns regarding the implications of this government stake, cautioning that such involvement might affect its ability to secure future grants and potentially hinder international business operations. Critics of the initiative claim it raises risks of political influence on corporate decisions, which could adversely affect Intel's market dynamics and competitive position, as highlighted by reports from Business Insider and Bangkok Post.