Trump's Plan for Intel: U.S. Government Eyes Stake in Chipmaker

The Trump administration is in talks to take a stake in Intel to support the company's domestic manufacturing expansion. Treasury Secretary Scott Bessent stated that Bitcoin forfeited to the government will be used to establish a Strategic Bitcoin Reserve. Fintech and crypto executives are urging the administration to block US banks from charging fees for customer data access, citing potential harm to innovation and small businesses.

The Trump administration is exploring the possibility of acquiring a stake in Intel to bolster the company's domestic manufacturing expansion, particularly its delayed Ohio semiconductor hub. This move follows a meeting between President Donald Trump and Intel CEO Lip-Bu Tan, where strategic discussions were held to stabilize Intel and secure additional capital [1].

Intel's Ohio expansion project, once promised as the world's largest semiconductor facility, has been repeatedly delayed due to financial strains. The potential government investment is aimed at supporting this critical initiative and could secure Tan's position at the helm of the struggling chipmaker. The size of the possible government investment has not yet been determined, and talks remain fluid [1].

The proposal would mark the latest example of direct government involvement in a strategic industry under Trump. Similar interventions include a 15% cut of certain semiconductor sales to China, a "golden share" in United States Steel Corp., and a $400 million Pentagon equity stake in rare-earth producer MP Materials Corp. [1].

Meanwhile, Treasury Secretary Scott Bessent has clarified the administration's stance on Bitcoin. He stated that the Treasury is exploring budget-neutral pathways to add to the Strategic Bitcoin Reserve without increasing taxpayer costs. Bitcoin forfeited to the government will form the foundation of the reserve, with any additional acquisitions structured to avoid raising federal budget expenses [2].

Furthermore, over 80 crypto and fintech executives have urged the Trump administration to block US banks from charging fees for customer data access. The executives argue that these fees threaten the business models of crypto exchanges and fintech companies, potentially stifling innovation and harming small businesses. The letter, backed by prominent crypto exchanges and lobby groups, claims that such fees would cripple the US crypto, artificial intelligence, and digital payments industries [3].

The Trump administration has been under pressure to maintain the open banking rule, which allows customers to share bank data with fintechs for free. The rule was strongly opposed by leading banking industry groups and was initially set to be killed by Trump. However, after pressure from the crypto lobby, the administration backtracked and agreed to leave the rule in place while creating a new one [3].

These developments highlight the Trump administration's ongoing efforts to support strategic industries and address potential challenges in the crypto and fintech sectors. The administration's actions are part of a broader strategy to back "domestic champions" in sectors deemed vital for national security, particularly in competition with China [1].

References:
[1] https://www.wionews.com/business-economy/trump-administration-in-talks-to-take-stake-in-intel-amid-ohio-factory-delays-1755242765488
[2] https://bitcoinist.com/from-no-to-maybe-treasury-secretary-bessent-leaves-bitcoin-option-open/
[3] https://cointelegraph.com/news/crypto-execs-want-trump-ban-bank-fees-customer-data