Trump is betting on Intel. Will the chips fall on his way?

The United States government It aims to obtain a share of shares in Intel In exchange for grants, the company was already committed to receiving it under Biden -era chips lawAccording to the comments, the Minister of Commerce was made by Howard Lootnick at Interview with CNBC. This step is part of the government’s efforts to enhance the manufacture of US chips.

“We must get a shares share for our money, so we will provide the money that was already committed under the Biden administration,” Lootnick said. “We will get royal rights for that.” Previously, the government was discussing a 10 percent stake in Intel, According to New York Times.

The deal can help the US -based semiconductor -based conductors, or the Purondi armed forces, which have required billions of dollars in construction and maintenance, even with the decline in demand for Intel chips in recent years. Some experts of chip industry and members of Trump administration say that maintaining Intel stands on his feet is necessary for American national security, because it reduces the country’s dependence on chip makers abroad.

But prominent analysts and economists say that the potential link between Intel and the American government can make conflicts of interests, and may not lead to the type of local chips industry raised by the administration.

“It is not the right policy for the United States government to be its own, and the privatization is in the opposite direction,” said Stephen Moore, a visiting fellow at the Heritage Foundation and a former economic advisor in the Trump campaign for 2016. “This is similar to the industrial model in Europe, and we did not do so much here in the United States because many of it ends with failure.”

Government intervention

The United States government has some history of investment in the private sector. Moore cites a program in the 1980s called The Synthetic Fuels Corporation, an investment that is directed at millions of dollars in federal orientation in companies that produce liquid fuel from coal, oil rock and Sands Tar. President Jimmy Carter said it was “the cornerstone of our energy policy,” and it was She fell By 1986.

After that, in the aftermath of the 2008 financial crisis, the US government intervened by saving billions of dollars to prevent American car manufacturers and some banks from going. These funds were issued either through the troubled assets program, as the US Treasury Department bought or included toxic assets, or in the form of bridges loans. It was many Payment in the end.

Recently, the Ministry of Defense has agreed to fund a rare magnet, MP materials, through stocks and loans, in order to expand production and reduce the country’s dependence on China. The theory will give MP Capital MP to increase its manufacturing ability From 3000 to 10,000 metric tons.

Moore says that the perfect scenario is that these arrangements between the government and the private industry have an end point. He says, “It should be an agreement to have a short -term share, then strip it,” he says.

But the current Trump administration takes some of these commercial transactions between the public and private sectors a step forward: in June The so -called “golden participation”. The government insisted that it has an opinion on the decisions of the United States Steel Company, including those appointed to the board of directors and future transport plans. (This deal is also designed to help the United States compete with China to produce steel.)