Why the US government is taking a stake in Intel

The U.S. government has taken a stake in Intel, the tech giant's semiconductor manufacturing business. This move comes after Intel's foundry business has struggled for some time. The government's investment is aimed at strengthening the U.S. semiconductor industry and reducing reliance on foreign chip manufacturers, particularly in Asia. The investment is part of the CHIPS and Science Act, a legislative initiative to boost domestic semiconductor production and innovation. By taking a stake in Intel, the government hopes to spur the company's efforts to expand its manufacturing capabilities and maintain its technological edge in the global semiconductor market. The partnership between the government and Intel is seen as a strategic move to bolster U.S. competitiveness in the critical semiconductor industry, which is essential for a wide range of technologies, from consumer electronics to military applications. The investment is expected to help Intel modernize its facilities and develop more advanced chip-making processes, strengthening the overall resilience of the U.S. semiconductor supply chain.