US Treasury Secretary Scott Bessent Clarifies US Investment in Intel

Login to Continue Learning

[Ad 1]

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

It’s Intel season, with news pouring in from all quarters. While SoftBank’s new minority stake in Intel grabbed headlines overnight, today’s focus is on US Treasury Secretary Scott Bessent and his insights on a potential US government stake in the company.

US TREASURY SECRETARY BESSENT:

U.S. INVESTMENT IN $INTC WOULD BE A CONVERSION OF GRANTS AND POSSIBLE INCREASE TO HELP INTEL STABILIZE.

THE LAST THING WE’RE GOING TO DO IS TAKE A STAKE AND TRY TO RUN THE BUSINESS.

— Wall St Engine (@wallstengine) August 19, 2025

To summarize, Bessent disclosed on CNBC that the proposed stake in Intel would be funded by converting CHIPS Act grants and possibly increasing the investment to stabilize the company. However, the US government does not plan to run the business.

Intel has received $7.9 billion in CHIPS Act grants and a facility unlocking an additional $11 billion worth of loans. It is also eligible for $3 billion under the Pentagon’s Secure Enclave program. The Trump administration reportedly considered taking a 10 percent stake, which would equate to around $10 billion.

In a unique start to his ruling against President Donald Trump’s administration on September 30, U.S. District Court Judge William Young included a scanned handwritten note sent to his office. The note read: “Trump has pardons and tanks – what do you have?” At the top of Young’s opinion in AAUP v. Rubio, which ruled that Trump’s effort to deport foreign-born student protesters was unconstitutional.

October 8, 2025

After accounting for its CHIPS Act grants, the US government might invest an additional $2.1 billion in Intel to meet the estimated $10 billion investment figure.

US TSY SEC BESSENT:

THERE’S NO TALK OF FORCING COMPANIES TO BUY FROM INTEL

WE HAVE TO STOP SINGLE POINT OF FAILURE IN SEMICONDUCTOR CHIPS SECTOR

— Wall St Engine (@wallstengine) August 19, 2025

Bessent has clarified that there is no talk of forcing companies to buy from Intel. This clarification addresses speculation about a potential monopoly, especially regarding onshore chip fabrication.

Meanwhile, SoftBank announced its intention to invest up to $2 billion in Intel as part of efforts to support the troubled tech giant.

Problem is that the $2bn from Softbank and $10bn from the US government are not enough to fix Intel…

SoftBank is taking a $2 billion stake in chipmaker Intel $INTC. The move is part of efforts to ramp up support for the troubled US tech giant.

— Special Situations Research Newsletter (Jay) (@SpecialSitsNews) August 19, 2025

This fluid situation is attracting significant attention, especially in the VC sphere. Terms like “once in a generation” opportunity are now being discussed. Whether this hype translates into tangible market opportunities for Intel remains to be seen.

[Ad 2]

Environment