The White House is looking at taking an actual stake in Intel and could use money from Biden's Chips Act to do it. How do you see that. Well, I think that's a distinct possibility, and especially because, well, if you look at where the chips are produced, the most important chips in the world, which I can say is probably two fold, of course, chips, but also defense types of chips, and not just for the US, but drones and all manner of smart, you know, killing machines that they use in the in defense are made ...

US-China Trade and Technology - A group of Senate Democrats is questioning President Trump's decision regarding Nvidia and AMD selling AI chips to China in exchange for a 15% revenue cut [1] - Lawmakers are concerned that this deal could compromise America's competitive edge and strengthen China's military [2] - The discussion involves the potential for industrial policy and government stakes in companies like Intel to reshape national security [2] Industrial Policy Debate - The discussion highlights differing views on industrial policy, with some arguing it has historically failed and others seeing it as necessary for national security, particularly in the semiconductor industry [4][5][7][8] - Concerns exist about relying on China for critical technologies like semiconductors and rare earth processing, prompting calls for thoughtful policy to address these vulnerabilities [8][20][21] - The debate includes the potential trade-offs of industrial policy, such as its impact on economic growth, consumer costs, and national security [10][11] Economic Perspectives - One perspective emphasizes the success of the free enterprise system in the US, citing the performance of the stock market and the "magnificent seven" companies [17][19] - Immediate expensing for capital purchases is highlighted as a positive policy for encouraging domestic industrial production [22] - Recent economic data indicates positive earnings reports, suggesting a favorable environment for investors [26]

Government Funding & National Security - The White House is considering using Chips Act money for a potential equity stake in Intel [1][2] - This initiative aligns with national security efforts, particularly in competition with China, similar to the $400 million preferred equity stake investment in NTP materials, a rare earth company, by the Defense Department [4][5] - The administration aims to achieve onshoring of chip manufacturing in the US [6] Intel's Position & Potential Deal - Intel may receive almost $8 billion, potentially up to $11 billion, in loans pre-agreed [2] - Intel has not directly commented on the reporting but issued a statement generally supporting onshoring manufacturing [6] - The idea of government equity stake in Intel reportedly arose during a meeting between Intel's CEO and the President [6][7][8] Revenue Sharing & Restrictions - Nvidia and AMD would be giving 15% of their revenues generated out of China to the federal government [5]

White House Eyeing Chips Act Funds for Intel Stake. Listen for more on Bloomberg Intelligence. https://t.co/QbQ1w5Afnp ...