President Donald Trump recently celebrated the government’s new investment in Intel, asserting his commitment to pursue similar deals in the future. Taking to Truth Social, he declared, “I will make deals like that for our Country all day long.” He criticized detractors, whom he referred to as “stupid people,” claiming that such agreements will enhance job creation and economic growth in the U.S. “I love seeing their stock price go up, making the USA RICHER, AND RICHER,” Trump added. “More jobs for America!!! Who would not want to make deals like that?”
Earlier in the day, White House economic advisor Kevin Hassett emphasized that the Intel transaction aligns with a broader strategy aimed at establishing a sovereign wealth fund to support various companies. The White House confirmed that it would acquire a 10% share of the chip manufacturing giant, a stake valued at approximately $8.9 billion. This investment will leverage some funding from the CHIPS Act, with additional allocations designated for initiatives focused on secure chip production.
While Hassett reiterated that federal involvement won’t extend to operational control, he described the Intel deal as a unique opportunity. “This is a very, very special circumstance because of the massive amount of CHIPS Act spending that was coming in,” he noted during an interview on CNBC’s “Squawk Box.” He underscored that Trump has long envisioned a sovereign wealth fund to bolster the U.S. economy, hinting at potential future deals across various industries.
In February, Trump signed an executive order aimed at establishing such a sovereign wealth fund, a financial mechanism typically employed by smaller nations rich in natural resources. Countries like Norway, with around $1.8 trillion in assets, lead the world in this area, followed closely by China and several Middle Eastern nations. Although unusual, government investments in private enterprises are not entirely without precedent; Hassett referenced the government stakes in Fannie Mae and Freddie Mac following the 2008 financial crisis.
Hassett clarified that the administration is “absolutely not in the business of picking winners and losers,” but stressed that this move is part of a larger economic strategy, which also includes tariffs designed to encourage companies to shift their production back to U.S. soil. As the government seeks to play a more active role in bolstering domestic production, the Intel investment signals a significant shift in U.S. economic policy under the Trump administration.
This approach aims to create a more robust American economy and promote job growth, while enhancing national competitiveness in crucial sectors like technology and manufacturing. As the administration moves forward, it remains to be seen how these investments and the proposed sovereign wealth fund will shape the economic landscape in the coming years.
With the potential for further transactions on the horizon, the Intel deal reflects a bold move towards more direct government involvement in private enterprise, aiming to secure a prosperous future for American industries and workers alike.
Original Source: https://www.cnbc.com/2025/08/25/white-houses-hassett-says-government-likely-to-continue-taking-stakes-in-companies-similar-to-intel-deal.html
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Publish Date: 2025-08-25 19:23:00
