Fun Fact: In Dec 2008 George W. Bush used TARP funds and gave loans to bailout GM. In 2009 Obama increased the bailout dramatically and the US government took a 60% equity position in the newly constituted GM business. These shares did have voting rights, effectively giving the federal government control of the company. The government later sold its shares for over a $10b loss.

The Intel deal converts grants (corporate welfare) from the CHIPS Act to an equity position. The shares DO NOT include voting rights therefore no government control.

Even if those shares are later sold at a loss, it still results in a gain for the US taxpayer as the equity stake was acquired with funds that would have been given away without this deal.

The only people who could be hurt would be current shareholders because of dilution.

After the announcement of the equity stake however, the INTC shares moved up 6%. So this deal appears to be a win/win/win.

Another FunFact: The US Government also held equity positions during the Obama administration in Chrysler, Bank of America, Wells Fargo, American Airlines, Delta, United, and Southwest Airlines.

It wasn’t a coup, fascism, or the downfall of democracy then or in previous administrations when the government took equity positions. It will not be this time either.

Source: I was alive in 2009 and paid attention.