Nikki Haley, a former Republican presidential candidate, has criticized the Trump administration’s choice to acquire a 10% share in Intel.
Haley stated, “Biden was wrong to use our taxes to subsidize the private sector under the Chips Act. The answer to Biden is not to rely on Intel’s government to have a part of the government.” She expressed concerns in a post on Social Platform X, suggesting that this move could lead to more government subsidies and ultimately lower productivity. “Intel will become a test case for what you need to do,” she added.
On Friday, President Trump confirmed the agreement between the US government and major chip manufacturers, insisting that the US “paid nothing for these shares, which are currently valued at around $11 billion.”
He emphasized the importance of Intel’s role in producing advanced semiconductors and chips, stating, “This is so much for America, and so for Intel,” in a post about True Society.
The White House has been approached for comments regarding these developments.
Earlier this month, Trump urged Intel’s CEO, Lip-Bu Tan, to resign shortly after Senator Tom Cotton raised concerns over Tan’s connections to China.
Commerce Secretary Howard Lutnick mentioned that one reason for negotiating deals with Intel could be to encourage domestic chip manufacturing. He pointed out, “We can’t rely on Taiwan, which is just 80 miles from China. We want to make them here.”
Lutnick celebrated the potential for Intel to lead in US-based semiconductor production, noting, “It’s nice that Intel can drive it in the US and make a US node or US transistor.”
Meanwhile, Senator Rand Paul (R-Ky.) voiced his opposition to securing a stake in Intel, labeling it as “a scary idea” and “a step towards socialism.”
Interestingly, the initiative has garnered support from self-identified democratic socialist Senator Bernie Sanders (I-Vt.), who asserted, “No. Taxpayers shouldn’t provide billions of dollars of corporate welfare to large, profitable companies like Intel with no return.” He further argued that if a microchip company profits from federal grants, then US taxpayers should receive a fair profit on that investment.
