[Chip Talk] U.S. Secures Intel Stake After All: "Semiconductor Power Struggle Intensifies"

Trump Moves to Acquire Intel Shares With Semiconductor Subsidies
Saving Intel Through Equity Participation, Mirroring the GM Bailout
Concerns Over "Favoritism" Arise... Disadvantage for Samsung and SK
Korean Firms Face Investment Pressure a

U.S. President Donald Trump has officially announced that the United States has acquired a 10% stake in Intel, which has been facing management difficulties. The U.S. government’s move to become the largest shareholder of a semiconductor company signals its intent to restructure the semiconductor supply chain around the country and strengthen control over the industry. This is expected to have significant repercussions for Korean companies such as Samsung Electronics and SK Hynix.

On August 22 (local time), President Trump stated on the social networking service Truth Social, “The United States now fully owns and controls a 10% stake in the great American company, Intel.” He added, “The U.S. government paid nothing for this, and the current value of the shares is about $11 billion (approximately 15 trillion won),” describing it as “a great deal for both America and Intel.” Intel’s largest shareholder has shifted from BlackRock (which held an 8.92% stake) to the U.S. government.

President Trump mentioned that he personally negotiated this deal with Intel CEO Lipbu Tan. U.S. Secretary of Commerce Howard Lutnick commented, “This historic agreement will strengthen America’s semiconductor leadership.” According to The New York Times, the agreement was finalized shortly after Secretary Lutnick’s remarks on August 19. The following day, Secretary Lutnick and Intel established the basic framework, and after board approval, CEO Tan and Secretary Lutnick finalized the details on August 21.

This move is seen as a quid pro quo based on subsidies provided under the CHIPS and Science Act (CSA). Intel had agreed to receive a total of $10.9 billion in subsidies during the Biden administration, and the equity acquisition is viewed as an extension of that arrangement.

The U.S. government’s equity participation demonstrates both its intent to bail out Intel and to restructure the semiconductor supply chain around the United States. Previously, the Trump administration required the U.S. government to hold a “golden share” with veto rights over key management decisions when Nippon Steel acquired U.S. Steel, and more recently, it required companies such as Nvidia and AMD to remit a portion of their sales to the government as a condition for exports to China. This time, by directly acquiring shares, the government has gained direct influence.

Samsung Electronics and SK Hynix have also finalized their subsidy amounts. Samsung Electronics is set to receive about $4.745 billion, and SK Hynix about $458 million. For Samsung Electronics, this subsidy would equate to roughly 1.6% of its market capitalization on a parent company basis. However, when calculated at the U.S. subsidiary level, the equity ratio could be much higher.

Industry insiders believe the Trump administration is simultaneously pursuing three objectives: strengthening control over strategic industries, pressuring for local investment, and securing leverage in negotiations. An executive in the semiconductor industry expressed concern, saying, “While the U.S. market is certainly important, if government equity participation expands, companies could effectively become subordinate to the government.”

The Wall Street Journal reported that the Trump administration is unlikely to seek equity stakes in companies such as Taiwan’s TSMC or U.S.-based Micron, which have announced additional large-scale investments following the launch of the second Trump administration. However, since Samsung Electronics and SK Hynix have not announced new investments beyond their existing plans, it is difficult to rule out the possibility that they will be targeted.

At a White House event, President Trump stated, “We will do more of these deals, and we will continue to do so.” As a result, attention is focused on whether the U.S. will demand similar equity acquisitions from foreign companies as well.

Some have raised the possibility of legal issues such as shareholder lawsuits. This is because it is unclear whether the CSA allows the government to directly acquire company shares. Some point out that the lack of congressional approval could also become a point of contention. Nevertheless, many believe that since the U.S. government has cited “crisis response” and “national security” as justifications for the equity acquisition, it would be difficult to overturn the measure even if lawsuits are filed. Intel, with the U.S. government as a shareholder, is expected to see reduced management uncertainty and benefit from government support in securing major clients.

There is a growing consensus that the semiconductor industry is entering a phase where government intervention is intensifying, beyond mere technological competition. The symbolism is significant, as the U.S. government is now directly intervening as a “shareholder” rather than just a provider of subsidies.

Many experts believe that government equity participation could go beyond simple financial support to influence voting rights and the decision-making process for strategic businesses. In the case of Intel, which requires large-scale investments and restructuring for server semiconductors and next-generation artificial intelligence (AI) chip development, this could become a significant variable in management decisions.

Legal disputes could also arise. Since the U.S. CSA does not explicitly grant the government authority to directly acquire company shares, the possibility of shareholder lawsuits has been raised. Some point out that the lack of congressional approval could also be problematic. However, since the U.S. government has justified the equity acquisition on the grounds of “crisis response” and “national security,” most observers believe that it would be difficult to overturn the measure even if lawsuits are filed.

The international repercussions are also expected to be significant. Japan and the European Union (EU) are focusing on boosting the competitiveness of their semiconductor industries by expanding subsidies and relaxing regulations for domestic companies. Now that the United States has shifted to direct equity participation, there is speculation that other major countries may follow suit with similar interventions. If governments begin to act as the largest shareholders, some experts warn that the global semiconductor market could become entrenched in a state of intergovernmental power competition.

Korean companies are unable to hide their unease. Samsung Electronics and SK Hynix have already pledged to build semiconductor plants and expand investments in the United States, but future changes in U.S. government policy could directly impact their investment plans and decision-making structures. While the market sees the U.S. government’s acquisition of Intel shares as potentially boosting investor confidence in the short term by attaching a “government guarantee” to the company, there are concerns that excessive government intervention could weaken corporate innovation and dampen private investment in the long run.

Ultimately, this latest move is being interpreted as more than just a bailout for Intel-it is seen as a signal for a fundamental reshaping of the global semiconductor order. If governments strengthen their control over strategic industries through direct equity participation, the semiconductor sector could be transformed into a complex battleground intertwined with politics, diplomacy, and security.