Intel faces new political and financial challenges because Donald Trump reportedly wants the government to directly fund the struggling chipmaker. Intel has lost almost half of its market value since 2023 while dealing with decreasing market demand and delayed Ohio plant development and increasing debt and significant workforce reductions. The company stands as the main recipient of CHIPS Act funding yet its future remains in doubt.
The intervention methods Trump uses differ from standard subsidy programs. He uses a direct management style which resembles activist investor methods by requiring executive concessions and linking state support to operational control. The government’s “golden share” deal with US Steel serves as an example of how Intel might receive similar arrangements which would grant Trump operational control of its Ohio facilities.
Intel faces its greatest challenge in obtaining customer orders for its foundry operations because AMD and Nvidia prefer to avoid using a competitor for manufacturing services. There are indications Trump might force chip designers to work with Intel or force the purchase of its foundry division. Such interference would modify Intel’s direction while maintaining its essential role in American technological and strategic goals.
