The Intel Stake Is a Corrupt Spin on Industrial Policy
The government should be able to purchase stakes in vital US companies, but not if the goal is to help the president amass power and riches.
Intel CEO Brian Krzanich found a buyer.
Photographer: Chris Kleponis/Getty Images
The Donald Trump administration’s announced purchase of just under 10% of Intel, the largest semiconductor company in the US, isn’t likely to be a one-off: More investments in other semiconductor firms are apparently to come. And the decision follows a Defense Department deal that made it the largest shareholder in a rare-earth mining and processing firm.
These actions have opened an overdue debate about whether and when the government should use investment dollars as a way to regulate. Commentators have sensibly raised hard questions about whether taking a stake in Intel effectively serves US interests. But the Trump administration’s move raises bigger issues.