August 28, 2025

California Governor Critiques Trump’s Intel Investment

News Summary

California Governor Gavin Newsom has condemned former President Donald Trump’s decision to secure an $8.9 billion federal investment in Intel, criticizing it as reckless. This investment yields a 10% equity stake in Intel, the sole American manufacturer of advanced chips. Newsom warns of potential backlash should similar actions arise under President Biden. Critics question the implications of such a federal stake, which they argue could verge on socialism, while Intel reassures that the investment will remain passive, emphasizing its role in American manufacturing jobs.

California Governor Takes Aim at Trump’s Intel Investment

In a recent turn of events, California Governor Gavin Newsom has openly criticized former President Donald Trump’s decision to have the federal government invest a hefty $8.9 billion in Intel, marking a 10% equity stake in the only American manufacturer of advanced chips. Labeling the move as outrageous and reckless, Newsom is sending a clear message that such actions would likely spark a wave of public backlash if similar measures were taken by President Joe Biden.

Trump’s Ambitious Chip Deal

Trump’s announcement comes after he negotiated profit-sharing agreements with technology giants like Nvidia and Advanced Micro Devices (AMD). However, these agreements haven’t been welcomed by everyone, with national security advocates raising eyebrows over the export of chips to China in exchange for shares of U.S. government revenues.

Reactions to the Investment

Trump’s move has stirred up a hornet’s nest of opinions across the political landscape. Critics have been quick to label this federal stake as bordering on socialism, arguing that it’s a slippery slope to the nationalization of private industries. Newsom was particularly vocal about this aspect, likening the situation to practices seen in China, which is known for its tight control over both private and public sectors. He humorously referred to Trump as “Chairman Trump”, indicating his disapproval of what he perceives as a governmental takeover of a business.

Intel’s Position

In response to the uproar, Intel has assured the public that the government’s stake is intended to be a passive investment. They emphasized that there would be no governance rights associated with this investment, all while reiterating their commitment to bolstering American manufacturing jobs. On the flip side, Trump remains unapologetic, stating that the deal will ultimately benefit both the government and Intel, reinforcing U.S. leadership in the semiconductor field.

The Stock Market Response

Intriguingly, the announcement has shown a tangible effect on Intel’s stock, which jumped by 5.5% following news of the government investment. This increase could indicate a level of confidence from investors in the direction Intel might head as a result of this partnership.

Challenges Ahead for Intel

Despite the positive stock response, Intel has not been without its challenges. The chipmaker has been striving to keep up with fierce competition from Asian heavyweights like TSMC and Samsung. As part of a broader restructuring effort, Intel’s CEO has recently hinted at plans to lay off a considerable number of employees, adding to the uncertainties surrounding its future.

A New Direction in Semiconductor Politics

Trump’s dealings in the semiconductor sector certainly mark a departure from the approaches taken by previous administrations on both sides of the political aisle. This shift highlights a growing divide in opinions on how government should interact with private industries, particularly in essential sectors like technology.

Conclusion

The announcement of Trump’s substantial investment into Intel has undoubtedly ignited discussions on both ends of the political spectrum, with ardent supporters and passionate detractors weighing in. The implications of this investment could be significant for the future of semiconductor manufacturing in the United States, making it an issue to watch closely as developments unfold.

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Author: STAFF HERE LOS ANGELES WRITER

LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the LA Auto Show, Hollywood Film Awards, and the Los Angeles Marathon. Our coverage extends to key organizations like the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology that power the local economy such as Warner Bros. and SpaceX. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HEREHuntingtonBeach.com, and HERESantaAna.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.

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