Intel rival SkyWater Technology hails Trump’s equity stake strategy

President Donald Trump is making waves with a new economic strategy that involves the U.S. government taking direct stakes in major American companies. The goal is to strengthen industries that drive prosperity and protect national security.

Last week, the White House announced that the government now owns nearly 10% of Intel, a leading chipmaker based in California. This ownership stake stems from federal grants that were converted into formal ownership shares. This move marks a departure from the traditional methods of supporting companies with loans, tax breaks, or contracts.

One of Intel’s competitors, SkyWater Technology, a semiconductor foundry based in Minnesota, sees the government’s equity stake in Intel as a positive step. SkyWater’s Senior Vice President of Commercial and A&D Business, Ross Miller, emphasized the importance of accountability when taxpayer dollars support companies with global ties. He highlighted SkyWater’s all-American operations, which contribute directly to strengthening the country’s infrastructure and independence.

Looking ahead, SkyWater hopes to collaborate further with the Trump administration to expand domestic capacity in foundational chip technologies. These technologies are essential for various industries, including defense, biomedical equipment, and quantum computing.

Other U.S. chipmakers like GlobalFoundries and Micron Technology could also be impacted by Trump’s new approach. GlobalFoundries, with semiconductor manufacturing facilities in New York and Vermont, could be a candidate for equity-linked deals aligned with the administration’s semiconductor resilience goals. Similarly, Micron Technology, which is investing in memory chip fabs in New York and Idaho with federal funding, could also be considered for similar arrangements.

Trump has hinted that more deals like the one with Intel could be on the horizon. However, not everyone views this strategy favorably. Some, like Jai Kedia, a research fellow at the Cato Institute, see it as a move towards socialism and a potential display of favoritism towards larger firms.

As the debate over government ownership stakes in major companies continues, it remains to be seen how this strategy will unfold and its implications for the U.S. economy.

(Author: Amanda, Business and Geopolitics Correspondent at Fox News Digital)