Intel loses autonomy: US buys 10% of chip giant

For decades, the “Intel Inside” logo was synonymous with innovation. Its chips powered millions of computers, creating, together with Microsoft, the “Wintel” era. But things have changed.

Last Friday, Donald Trump announced that the United States government was acquiring 10% of Intel for $8.9 billion , a move many consider a backdoor bailout. Behind this decision lies a radical transformation: the most iconic semiconductor manufacturer can no longer survive without government aid.

In the 1990s, Intel dominated the chip market. However, the outlook for 2025 is very different:

• NVIDIA is worth $4.3 trillion, compared to Intel's $108 billion.
• Its foundry division lost $13.4 billion in 2024.
• It has laid off more than 10,000 employees.
• Their own engineers prefer to manufacture with TSMC rather than using internal factories.

The contrast is stark: what was once the symbol of American technological capitalism now depends on public funding to remain afloat.

For Trump, the operation is a political triumph. He presented it as "a great deal" for the United States, reinforcing the idea that the semiconductor industry is now a matter of national security .

But for Intel, it means losing autonomy. With 76% of its revenue coming from abroad, every strategic decision will be subject to political scrutiny from Washington.

For Europe, the news is worse: the EU is partially dependent on Intel for its digital sovereignty plans. If the largest Western chipmaker becomes an instrument of US policy, the European bloc becomes vulnerable to Asia.

Public money doesn't solve the structural problem. Intel lost leadership on three key fronts:

1. Smartphones : refused to manufacture chips for the first iPhone.
2. Artificial Intelligence : It came late while NVIDIA was moving forward.
3. Manufacturing : It fell behind TSMC, which now leads with a superior foundry model.

As Intel CEO Lip-Bu Tan said, “Thirty years ago, we were leaders. Today, we're not even in the top 10 in semiconductors.”

Intel is betting everything on its 18A manufacturing node, its latest technological asset. However, having the government as a shareholder changes the rules of the game.

Competitors like AMD and Qualcomm now face a state-backed rival, which could create unfair competition. Even Republican senators like Rand Paul have warned of the risk of the US adopting a "disguised state capitalism."

For Europe, this semi-nationalization is a brutal reminder: the era of the free market in semiconductors is over .

Intel was born as a pioneer, built the future of computing, and was synonymous with innovation. Today, it has become a forced partner of a government , caught between politics and survival. The question is not just what will happen to Intel, but what this new model means for the rest of the world.