“In theory, the CHIPS Act provided a mechanism for the federal government to retract the grant and get all or part of its money back should Intel fail to meet its obligations. It’s not clear whether the federal government would have exercised its option to take the money back, but it was an option—until Trump stepped in.
As the company flailed, Trump met with its CEO, Lip-Bu Tan. Trump first called for him to resign. Then in August, the Trump administration announced that the federal government would just take partial ownership of Intel. Essentially, the U.S. government would purchase a roughly 10 percent stake in the chipmaker, partially nationalizing the company. And funds from CHIPS would be used to do it.
Trump bragged about the deal, saying he planned to “do more of them.” The company’s stock price rose on the news, suggesting that investors liked it. But that’s probably because it was a good deal for the company, at taxpayer expense.
According to public financial filings, the federal government would disburse the remaining funds, about $6 billion, while clearing any obligations for the company to actually complete work on new domestic semiconductor fabs.
In exchange, the federal government would gain partial ownership—as well as all the financial risks stockholders usually have when they invest in companies. Those risks will now be borne by taxpayers.
…
Trump gave Intel a federal bailout, removing the company’s public obligations and accountability while loading more financial risk onto the public.”