Intel's CFO David Zinsner received a call from the US Commerce Department in August 2024 about the government taking a 10% stake. Donald Trump demanded conversion of Chips Act grants plus $3.2bn in Defense contracts into equity. The board initially balked but acquiesced, completing the largest federal equity intervention since the 2009 GM bailout. Intel was saved from a possible break-up, giving the world an alternative to TSMC's 90% dominance of advanced chips.

Since the government stepped in, Intel pulled in $5bn from Nvidia and $2bn from SoftBank, and its shares more than quadrupled. But CEO Lip-Bu Tan must complete a turnaround. When Tan took over in March 2024, revenue was flatlining, the company posted $18.8bn in losses for 2024, its AI strategy was in disarray, and a critical Arm foundry deal had collapsed. Former CEO Pat Gelsinger's foundry bet had faltered and 18A technology was delayed.

Tan cut 20,000 jobs, sold Altera and Mobileye stakes for $5.2bn, and installed new leadership. In August, Trump called for Tan's resignation over prior Chinese investments. Tan met with Trump, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent, convincing them he was both a patriotic American and the only person capable of turning around the national chip champion.

The equity deal included punitive terms to deter Intel from abandoning its foundry business but signaled Washington's backing. Tan had warned Intel could abandon its 14A process, which would end its ambitions to compete with TSMC in advanced contract manufacturing. He deduced Intel's volume alone would never justify leading foundry costs.