Many individuals have shared their thoughts after President Donald Trump announced that the government has acquired a 10 percent ownership in the electronics firm, Intel.
The announcement was made on X by US Secretary of Commerce, Howard Lutnick, who described it as a ‘historic agreement’.
“BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies. Thanks to Intel CEO @LipBuTan1 for striking a deal that’s fair to Intel and fair to the American People,” Lutnick stated.
“This historic agreement strengthens US leadership in semiconductors, which will both grow our economy and help secure America’s technological edge.”
Earlier in the day on Friday (August 22), Trump revealed the new deal, leading to a surge in the company’s stock prices soon afterward.
“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the US, Intel is deeply committed to ensuring the world’s most advanced technologies are American made,” Intel CEO Lip-Bu Tan said in a statement.
“President Trump’s focus on US chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security.”
The agreement was reached following a meeting between Tan and Trump, after Trump had urged the CEO to resign due to alleged ‘ties to Chinese firms’.
“He walked in wanting to keep his job, and he ended up giving us $10bn for the United States,” Trump remarked on Friday.
Intel explained in a statement that the government’s stake would be funded by ‘$5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act, and $3.2 billion awarded to the company as part of the Secure Enclave program’.
The investment will remain a ‘passive ownership’ without ‘Board representation or other governance or information rights’.
“The government also agrees to vote with the Company’s Board of Directors on matters requiring shareholder approval, with limited exceptions,” Intel added.
The deal has sparked concerns among some individuals regarding ‘similarities’ between Trump’s administration and ‘socialism’.
“ALL HAIL CHAIRMAN TRUMP! WITH HIS GLORIOUS 10% PURCHASE OF INTEL, THE SOCIALIST REPUBLIC OF AMERICA ENTERS A BOLD NEW ERA OF GOVERNMENT-RUN BUSINESS,” one account expressed.
Conservative radio host Erick Erickson also critiqued the plan as ‘actual socialism happening by a Republican administration’.
He drew comparisons to Zohran Mamdani’s mayoral campaign in New York City, highlighting perceived hypocrisy among Republicans for not opposing the deal.
He stated: “You can’t just be against socialism when the left does it. If you’re not against socialism overall, guess what? You’re going to get socialism. So if you support socialism, apparently Donald Trump is your guy.”
Despite the critiques, Senator Bernie Sanders voiced his support for the deal, telling Reuters: “If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment.
“Taxpayers should not be providing billions of dollars in corporate welfare to large, profitable corporations like Intel without getting anything in return.”