The deal, confirmed Friday by President Trump himself, puts Washington directly inside one of the world’s most critical tech companies. Trump boasted that the U.S. “paid nothing” for the stake, which is now worth roughly $11 billion. But critics are calling it everything from socialism to corporate welfare.
Nikki Haley, who once served as Trump’s U.N. ambassador and ran against him in the 2024 GOP primary, slammed the move in a sharp post on X:
“Biden was wrong to subsidize the private sector with the Chips Act using our tax dollars. The counter to Biden is not to lean in and have govt own part of Intel. This will only lead to more government subsidies and less productivity. Intel will become a test case of what not to do.”
Sen. Rand Paul (R-Ky.) didn’t mince words either, calling the Intel stake a “terrible idea” and a dangerous “step toward socialism.” For a libertarian like Paul, the government muscling into private enterprise is the ultimate red flag.
On the opposite side of the spectrum, Sen. Bernie Sanders (I-Vt.) a self-described democratic socialist actually agrees with Haley and Paul, but for different reasons. Sanders blasted the Intel deal as corporate welfare, saying taxpayers shouldn’t bankroll mega-profitable companies without seeing real returns.
“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,” Sanders said.
For Trump, the decision is about national security. With 99% of the world’s leading-edge semiconductors produced in Taiwan — just 80 miles from China Washington has been desperate to move chip manufacturing back home. As Howard Lutnick, CEO of Cantor Fitzgerald, put it on CNBC:
“We cannot rely on Taiwan. We want to make them here.”
Supporters say the Intel deal ensures America won’t be held hostage to global supply chains. Critics argue it’s a slippery slope toward government-controlled industry something both libertarians and fiscal conservatives loathe.
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What do you think is this smart national security policy, or the government picking winners and losers in the marketplace?
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