US Government Takes Stake in Intel: A Geopolitical Gamble
The US government's $8.9 billion investment in Intel, acquiring a 10% stake, has sparked controversy. Critics argue this violates market principles and could lead to politically driven decisions, harming competitiveness. However, the author contends this is a necessary gamble, given the unique nature of chip manufacturing and geopolitical risks (especially TSMC's proximity to China). Intel's strategic missteps have left it lagging behind TSMC. The government stake aims to ensure the long-term survival of US chip manufacturing, avoid over-reliance on foreign companies, and provide Intel with credibility to attract customers. Despite risks, the author argues this is the least-bad option for US national security and economic future.
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