President Donald Trump has responded to criticism over his administration’s decision for the US Government to acquire a 10 percent stake in Intel.
The move follows the 79-year-old President’s push for Intel’s CEO, Lip-Bu Tan, to step down due to alleged connections with Chinese companies.
“He walked in wanting to keep his job, and he ended up giving us $10bn for the United States,” Trump stated on Friday, August 22.
Despite the substantial gain for taxpayers, some individuals are expressing concerns that the Trump administration is veering towards 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,” California Governor Gavin Newsom tweeted in jest.
Ownership of private businesses by the government can be considered a form of state socialism, which involves social ownership of production.
In a sharp retort on Truth Social, the Republican president commented, “I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All goes to the USA.”
Trump continued, “Why are ‘stupid’ people unhappy with that? I will make deals like that for our Country all day long.”
“I will also help those companies that make such lucrative deals with the United States. I love seeing their stock price go up, making the USA RICHER, AND RICHER. More jobs for America!!! Who would not want to make deals like that?”
Intel clarified that the government’s investment would be supported 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.’
While it appears to be a significant achievement, some, like Governor Newsom hinted, argue it comes at the cost of adopting socialist policies, with figures such as conservative radio host Erick Erickson expressing this concern.
Erickson remarked, “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.”
He was alluding to the criticism socialist Zohran Mamdani faced while running for mayor of New York City.
Regarding the US Government’s involvement in the business, Intel CEO Tan commented, “As the only semiconductor company that does leading-edge logic R&D [research and development] and manufacturing in the US, Intel is deeply committed to ensuring the world’s most advanced technologies are American made.”
“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.”