Beyond market forces, Intel's resurgence is significantly propped up by US government support. Viewing domestic chip manufacturing as a national security imperative, the government can influence hyperscalers to commit to buying from Intel, guaranteeing demand for its new fabs.

As part of its comeback, Intel received a major federal intervention. The U.S. government took a 10% equity stake, a deal structure the Commerce Department described as "not up for negotiation," forcing Intel to convert CHIPS Act grants and defense contracts into equity.

The U.S. is shifting from industry supporter to active owner by taking direct equity stakes in firms like Intel and U.S. Steel. This move blurs the lines between free markets and state control, risking a system where political connections, not performance, determine success.

Historically, the U.S. government has only taken equity in private firms during bailouts with the goal of exiting quickly. Recent deals with companies like Intel represent a new strategy of long-term investment to bolster specific industries, a marked departure from past policy.

Lip-Bu Tan frames the U.S. government's investment not as a bailout but as a strategic shareholding, essential for building critical infrastructure. He draws a direct parallel to the Taiwanese government's foundational role in TSMC, signaling a shift in American industrial policy to compete globally.

As part of its equity deal with Intel, the U.S. government has agreed to vote its 9.9% stake according to the board's recommendations. This arrangement effectively hands the board a powerful, stable voting bloc, insulating management from shareholder activism and reinforcing the existing power structure.

Intel's revival and its landmark deal with Apple were not purely market-driven. The U.S. government, including the President and Commerce Secretary, actively pressured tech CEOs at Apple, NVIDIA, and SpaceX to partner with Intel, coupling direct investment with high-level deal-making to ensure the chipmaker's strategic success.

The government's equity stake in Intel replaced a milestone-based grant system. This delinks the funding from specific performance targets, like building fabs, converting the deal into a higher-risk bet on the company's overall success rather than a payment for specific outcomes.

The government is no longer just a regulator but is becoming a financial partner and stakeholder in the tech industry. Actions like taking a cut of specific chip sales represent a major "fork in the road," indicating a new era of public-private relationships where government actively participates in financial outcomes.