Featured Image Credit: Getty Images/Patrick van Katwijk
Topics: Donald Trump, Politics, US News, News
Lucy Devine
Topics: Donald Trump, Politics, US News, News
People have been saying the same thing after President Donald Trump announced a 10 percent government stake in electronics firm Intel.
The news was announced on X by US Secretary of Commerce Howard Lutnick, who called it a 'historic agreement'.
“BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies. Thanks to Intel CEO @LipBuTan1 for striking a deal that’s fair to Intel and fair to the American People," he wrote.
"This historic agreement strengthens US leadership in semiconductors, which will both grow our economy and help secure America's technological edge."
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Meanwhile, Trump had also revealed the new deal earlier in the day on Friday (August 22), with shares in the company soaring not long afterwards.
"As the only semiconductor company that does leading-edge logic R&D and manufacturing in the US, Intel is deeply committed to ensuring the world's most advanced technologies are American made," Intel CEO Lip-Bu Tan said in a statement.
"President Trump's focus on US chip manufacturing is driving historic investments in a vital industry that is integral to the country's economic and national security."
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The deal followed a meeting between Tan and Trump after Trump called for the CEO to resign over what he alleged were 'ties to Chinese firms'.
“He walked in wanting to keep his job, and he ended up giving us $10bn for the United States,” Trump said on Friday.
In a statement, Intel has explained that the government's stake will be funded by '$5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program'.
Meanwhile, the investment will be a 'passive ownership' with 'no Board representation or other governance or information rights'.
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"The government also agrees to vote with the Company’s Board of Directors on matters requiring shareholder approval, with limited exceptions," they add.
Following the deal, some people have been concerned over 'similarities' between Trump's government and 'socialism'.
"ALL HAIL CHAIRMAN TRUMP! WITH HIS GLORIOUS 10% PURCHASE OF INTEL, THE SOCIALIST REPUBLIC OF AMERICA ENTERS A BOLD NEW ERA OF GOVERNMENT-RUN BUSINESS," one account wrote.
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Meanwhile, conservative radio host Erick Erickson described the plan as 'actual socialism happening by a Republican administration'.
He also compared the move to Zohran Mamdani running for mayor of New York City, and said Republicans were being hypocritical by not calling out the deal.
He said: “You can’t just be against socialism when the left does it. If you’re not against socialism overall, guess what? You’re going to get socialism. So if you support socialism, apparently Donald Trump is your guy.”
Despite criticism, Senator Bernie Sanders said he supported the deal, explaining to Reuters: “If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment.
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“Taxpayers should not be providing billions of dollars in corporate welfare to large, profitable corporations like Intel without getting anything in return.”
UNILAD has contacted the White House for comment.