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Government as a shareholder brings real risks, says Dartmouth's Paul Argenti
CNBC Television· 2025-08-15 12:22
Market Reaction & Potential Government Intervention - Intel's stock price increased by more than 7% following reports of potential government stake [1] - The Trump administration previously pressured Intel's CEO regarding ties to China [1] Strategic Implications & National Security - Semiconductors are considered a strategic asset, prompting government interest in strengthening the industry supply chain [4] - Government intervention aims to bolster national security [4] Risks & Governance Concerns - Government ownership introduces governance risks, especially given existing scrutiny of Intel's leadership [4] - Concerns exist regarding potential government overreach and the risk of "picking winners" [7] - The long-term impact of government involvement is uncertain, particularly with potential changes in administration [12] Economic & Geopolitical Considerations - Government intervention could lead to protectionist responses from other countries [15] - The move may undermine the US's promotion of free market capitalism [10][15] Historical Context & Alternative Approaches - Government involvement in private enterprise is not unprecedented, citing examples like Singapore and Airbus [4][8][9] - Inducements, rather than direct ownership, could be an alternative approach [3]