So apparently the U.S. government is thinking about becoming Intel’s sugar daddy, and honestly? It’s about time someone stepped in to help this hot mess of a chipmaker.
Here’s the tea: Bloomberg dropped a bombshell report saying the Trump administration is eyeing a direct stake in Intel (INTC), and the stock immediately jumped 6% because Wall Street loves nothing more than government bailout vibes. The plan would basically use CHIPS Act funding to help Intel build that massive Ohio facility they’ve been promising since 2022 but keep pushing back like a college student with a term paper.
The Ohio Situation is Peak Intel Energy
Remember when Intel announced they’d build a $20 billion chip complex in Ohio that could grow to $100 billion? Yeah, that was supposed to start producing chips by 2025. Plot twist: it’s now delayed until the 2030s. Classic Intel move – overpromise, underdeliver, repeat.
The new CEO, Lip-Bu Tan (who replaced Pat Gelsinger after the board basically said “you’re fired” in 2024), has pushed the timeline back even further. At this point, we’ll probably have flying cars before Intel gets those Ohio fabs running.
Why This Actually Makes Sense
Look, Intel is basically the semiconductor equivalent of that friend who peaked in high school. They used to dominate chips, but now they’re watching NVIDIA eat their lunch in AI while TSMC builds everyone else’s chips better than Intel can build their own.
The government stepping in isn’t just charity – it’s national security. We can’t keep depending on Taiwan for all our chips when geopolitics are getting spicy. Intel’s foundry business (where they make chips for other companies) has been struggling to find customers because, surprise, their technology isn’t quite up to snuff yet.
The Plot Thickens
This comes after Trump initially told Tan to resign over his Chinese investments, then did a complete 180 after meeting with him Monday. Nothing says “stable leadership” like completely changing your mind in a week, right?
Meanwhile, the White House just announced they’re taking a 15% cut of NVIDIA and AMD chip sales to China, which is basically the government saying “we’re in the semiconductor business now, deal with it.”
The Bottom Line
Intel stock is up 22% this year, which sounds great until you realize it’s mostly because expectations were so low that any good news feels like a miracle. The company has deals with Amazon and Microsoft to make chips, but they’re still miles behind in the AI race.
A government stake could provide the cash and stability Intel desperately needs to actually execute on their promises. Or it could turn into another government-backed disaster. Either way, it’ll be entertaining to watch.
The real question isn’t whether the government should invest in Intel – it’s whether Intel can finally stop being Intel long enough to actually deliver on something. Based on their track record, I’m not holding my breath, but hey, stranger things have happened in 2025.