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Intel Corporation (INTC) has received a significant investment from the U.S. government, with Washington acquiring a 10% equity stake valued at approximately $8.9 billion. This move follows a decade of stagnant share performance and financial losses for the company. The investment is part of a broader strategy by the Trump administration, aiming to secure national interests in semiconductor production as the U.S. faces heavy reliance on foreign manufacturers like Taiwan Semiconductor Manufacturing Company (TSMC).
The U.S. government’s strategic stake comes amid Intel’s plans for an ambitious expansion in Ohio, although production at its facilities is not expected until 2030. With TSMC currently producing over 60% of the world’s semiconductors and almost 90% of advanced chips, this government involvement signals a shift toward protecting domestic production capabilities, with additional investment opportunities expected in defense contractors such as Lockheed Martin (LMT).
This industrial policy marks a major shift in how Washington engages with the market, moving from regulatory roles to direct investment, aiming to stimulate growth in critical sectors as key dates, including a significant reveal planned for September 30, approach.
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