Trump Administration Considers Nationalizing Intel Amid Urgent Chip Security Push

The Trump administration is reportedly in advanced discussions to potentially nationalize Intel, America’s largest chip fabricator, a move likened by experts to a modern-day “Manhattan Project.” This unprecedented consideration, typically reserved for national emergencies, underscores the escalating urgency to secure domestic semiconductor supply chains and counter China’s growing influence in the global tech and AI arms race.

Sources indicate that while the exact stake the government seeks remains undisclosed, the talks aim to reduce America’s critical reliance on foreign chip manufacturers like Taiwan’s TSMC, especially amidst escalating geopolitical tensions with China. Intel, unique in its ability to both design and manufacture chips, is seen as pivotal to onshoring crucial production for artificial intelligence, defense, and the broader economy.

MIT AI computer scientist Dave Blundin emphasized the gravity of the situation, stating, “This feels like the Manhattan Project — or the run-up to World War II. It’s every bit as important as the space race was, as the nuclear arms race was. Actually, it’s more important.” While Intel declined to comment on specific discussions, the company affirmed its commitment to supporting President Trump’s efforts to bolster U.S. technology and manufacturing leadership.

This potential nationalization comes just a week after two major AI chip companies, Nvidia and Advanced Micro Devices (AMD), reportedly struck a controversial deal with the White House. The agreement allows them to sell semiconductors in China in exchange for handing over 15 percent of their chip sales revenue to the U.S. government. This arrangement, which could generate over $2 billion for the U.S., has drawn criticism from security experts who warn of its potential to inadvertently aid Chinese military advancements and set a “slippery slope precedent” in U.S.-China relations. Simultaneously, President Trump has declared intentions to impose a 100 percent tariff on imported semiconductors unless companies establish manufacturing facilities within the United States.

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