Collins Interviewed by KNX Discussing U.S. Government’s Stake in Intel

Shawn Collins, Partner at Stradling, recently spoke with KNX about President Trump’s announcement that Intel will grant the U.S. government a 10% ownership stake in exchange for $10 billion in funding under the CHIPS Act. The deal has sparked debate about whether the government can legally hold equity in a private company.

Collins explained that while the move is unusual, it is not without precedent. “We saw this during the 2008 financial crisis when the government took ownership stakes in automakers like GM to keep them financially afloat,” he noted. “The key difference is that those investments were reactive, while this move with Intel is prospective, designed to ensure domestic chip production capacity in the future.”

He also raised concerns about the implications of government influence. While a 10% stake often entitles a shareholder to a board vote, Collins cautioned that direct government involvement in corporate decision-making could set a troubling precedent. “It edges toward the type of intervention more common in authoritarian systems, which raises questions about how much control the government should have over private enterprise.”