Intel CEO Lip-Bu Tan Says US Stake Was a Strategic Step to Restore Intel’s Glory

Intel’s CEO Lip-Bu Tan has described the U.S. government’s recent decision to take a 10% stake in Intel as a “deliberate and strategic” step toward restoring America’s dominance in semiconductor manufacturing. Speaking at the Future Investment Initiative in Saudi Arabia, Tan drew bold parallels between this move and the way nations like Taiwan and South Korea actively support their tech giants, TSMC and Samsung, respectively.

He emphasized that government participation is not about rescue – it’s about resilience. “If you look at TSMC and Chartered Semiconductor, the government is a shareholder in those countries, and it’s very important for the resilience of the supply chain,” Tan stated.

According to Tan, the collaboration with the Trump administration was pivotal in securing this support. During their meeting, he shared his vision of ‘making Intel great again’ – a direct echo of his time at Cadence, where he delivered a one-hundredfold return to shareholders. That performance reportedly impressed Trump enough to initiate the U.S. government’s involvement, a move that Tan now calls a turning point for the American chipmaker.

Critics have pointed out that Intel has long benefited from government contracts and incentives, calling this move just another round of corporate welfare. Tan, however, insists that this stake represents a shift toward accountability and innovation. He contends that the partnership provides Intel with both stability and a mandate to lead in areas like artificial intelligence and foundry services. “We’re entering an age where AI isn’t just software – it’s physical and agentic. Intel must be at the center of that transformation,” he added.

The CEO also addressed concerns about his prior investments in China, clarifying that collaborations with Chinese firms were a common practice two decades ago. He stressed that Intel’s focus today lies squarely within the United States and its allies, ensuring a secure and transparent supply chain. The U.S. stake, according to Tan, has already improved Intel’s financial standing and attracted renewed attention from industry players like NVIDIA and SoftBank, helping restore confidence in what was once Silicon Valley’s crown jewel.

Under Tan’s leadership, Intel appears determined to return to its former stature. The dual strategy – deep investments in AI segments and full commitment to foundry operations – signals a clear path forward. Whether this renewed partnership between government and industry will indeed make Intel “great again” remains to be seen, but it’s undeniable that for the first time in years, the company’s direction feels intentional, coordinated, and, above all, ambitious.