The Trump administration is exploring a dramatic move to take partial control of Intel Corp to safeguard domestic semiconductor manufacturing as global tensions escalate over technology and Taiwan.
According to the Daily Mail, the proposal is part of a sweeping initiative likened to a modern-day "Manhattan Project" aimed at restoring U.S. dominance in chip fabrication while simultaneously forging a revenue-sharing agreement with Nvidia and AMD to continue limited exports to China.
According to administration insiders, talks have commenced between the government and Intel regarding a potential acquisition of a stake in the company. Although the percentage has not been disclosed, officials describe the effort as part of a broader national strategy reminiscent of historic emergency mobilizations. Intel, the nation’s largest chip manufacturer that both designs and fabricates its semiconductors, holds strategic importance in contrast to companies like Nvidia and AMD, which are more advanced in specific AI chip capabilities but rely heavily on overseas facilities for production.
The nationalization discussions arise amid concerns about potential disruptions to global chip supplies due to escalating tensions between China and Taiwan. Taiwan Semiconductor Manufacturing Company (TSMC) leads the global fabrication industry, and analysts warn that any military conflict involving Taiwan could threaten critical access for the U.S.
Security Concerns Drive Push for Domestic Chip Control
Dave Blundin, an artificial intelligence researcher from MIT, described the urgency of the situation as equivalent to wartime planning. "This feels like the Manhattan Project — or the run-up to World War II," Blundin said, adding that the effort to relocate supply chains and fabrication capabilities is akin to “mobilization for conflict.” He emphasized the strategic importance of Taiwanese fabs, stating that U.S. defense of the island is largely based on preserving access to its infrastructure. "If the fabs all move to the U.S., then why would the U.S. defend Taiwan?" he added, reflecting the shifting geopolitical calculus behind the effort.
While nationalizing corporations is rare, such measures have occurred during crises, such as during the 2008 financial collapse, when banks were temporarily brought under federal control, or during World War II, when transportation resources were commandeered for military use.
Intel Remains Noncommittal as Discussions Continue
In response to reports of ongoing negotiations, Intel declined to confirm or deny specifics but issued a statement expressing its alignment with the administration's objectives. "We look forward to continuing our work with the Trump administration to advance these shared priorities, but we are not going to comment on rumors or speculation," the company stated.
A White House spokesperson, Kush Desai, similarly cautioned the public against treating the talks as finalized. “Discussion about hypothetical deals should be regarded as speculation unless officially announced by the administration,” Desai said. Experts argue that bringing chip manufacturing home reduces the country’s vulnerability to foreign disruptions but acknowledge that such shifts require massive investment and time. The administration appears to be weighing its options carefully, recognizing both the strategic urgency and potential economic impact.
Export Deal with Nvidia and AMD Raises Eyebrows
In a parallel move, the Trump administration reached a quiet agreement last week with leading AI chip designers Nvidia and AMD. Under the deal, the companies received export licenses allowing them to sell chips in China in exchange for surrendering 15% of their sales revenue from the Chinese market. This arrangement could generate more than $2 billion for the federal government annually. However, critics are questioning the logical consistency of both restricting and profiting from chip sales to a strategic rival like China. Jensen Huang, CEO of Nvidia, reportedly met with President Trump in Washington ahead of the announcement. The companies have so far not elaborated publicly on the arrangement, which was first reported by the Financial Times.
Experts Warn of Long-Term Strategic Risk
While the revenue-sharing deal provides immediate financial and diplomatic benefits, industry and national security experts have flagged potential dangers. Some fear that chips exported under the agreement—especially Nvidia’s advanced H20 models—could empower Chinese advances in AI, including military applications.
Blundin cautioned that while the move might boost the U.S. economy in the short term, it could become "an incredibly slippery slope." He concluded that it’s a "very, very good business deal and incredibly slippery slope precedent." Other voices, like former National Security Council China director Liza Tobin, criticized the administration's approach. She called the export deal "an own goal" that could signal to Beijing that U.S. policies are negotiable under economic pressure.
Tariffs and Legislation Signal Broader Strategy
Alongside nationalization efforts and export regulation, the Trump administration is also prepared to impose a 100% tariff on semiconductor imports for any company that refuses to manufacture chips domestically. This move is designed to further incentivize the reshoring of the supply chain.
The approach would essentially add another layer of financial pressure on companies that remain dependent on foreign fabrication, particularly in Asia. Some companies might find themselves forced to reinvest in American facilities or risk being priced out of the U.S. market. In this multipronged push, the White House appears to be reconfiguring the entire framework of semiconductor production in a bid to position the United States not just as a consumer of tech goods but as a self-reliant producer critical to global security.
Balancing Economic Gains with National Interests
Administration officials have not disclosed how the revenue generated from the Nvidia and AMD deal will be allocated. However, analysts suggest it could be reinvested into infrastructure, research, or even subsidies to support domestic chip fabrication startups. Excitement and uncertainty surround the outcome of the Intel negotiations. If implemented, it would mark one of the largest interventions in private industry in recent memory and set a precedent for public-private partnerships in high-tech sectors. For now, the Trump administration continues to walk a tightrope between boosting American chip capacity and managing the risks associated with collaboration and continued technology exchange with China.
