The Journal. — "Inside Intel's Deal With the U.S. Government"

Date: August 27, 2025
Hosts: Jessica Mendoza & Robbie Whelan
Podcast by: The Wall Street Journal & Spotify Studios

Episode Overview

This episode dives deep into the dramatic and unprecedented deal between Intel—the iconic American chipmaker—and the U.S. government. Host Jessica Mendoza, joined by WSJ reporter Robbie Whelan, explores how political pressure, international intrigue, and industrial policy converged to make the U.S. government Intel's largest shareholder. The episode reveals insider perspectives on the White House's motives, the characters behind the scenes, and what this all means for the future of tech and state intervention in business.

Key Discussion Points & Insights

1. The Crisis at Intel Begins (00:05–07:45)

• President Trump's Online Call for CEO’s Resignation
  • Trump accused Intel CEO Lip Bhutan of being "highly conflicted" because of past business ties to China and demanded his resignation via Truth Social.
  • Notable quote:
    • Robbie Whelan: “Five minutes after this segment runs, he goes on to Truth Social and posts this really dramatic message.” (06:18)
• Backdrop: Intel’s Decline
  • Intel, once a titan in chips, has been lagging behind rivals like Nvidia and TSMC, struggling with a declining stock and failed attempts to remain competitive in both chip design and manufacturing.
• Immediate Fallout
  • Intel's board goes into "full blown panic," fearing for the CEO’s position and company’s future amidst this very public challenge.
    • Robbie Whelan: “My understanding is it was full blown panic. The board starts freaking out. He is very rattled by this.” (07:45)

2. The Meeting That Changed Everything (08:00–11:09)

• Tan’s Oval Office Strategy

  • Lip Bhutan's advisors tell him to clear his name and tie Intel’s fate to America’s, stressing loyalty to Trump's manufacturing agenda.
  • Notable quote:
    • Robbie Whelan: “You’ve got to convince [Trump] you’re not a Chinese spy… and convince him it’s in his interest long term to make sure Intel does not fail.” (08:06)
  • During the meeting, Tan emphasizes his accomplishments in China but vows loyalty to the U.S. and supports reshoring manufacturing.
  • Trump responds positively, ultimately backing off public criticism.
    • Robbie Whelan: “He spoke Trump's language. He gave his endorsement to the president's plan. And the meeting went fantastically well.” (10:08)

• White House Motives

  • Trump’s team, especially Commerce Secretary Howard Lutnick, seeks greater leverage over the CHIPS Act grants (money already given to chipmakers under the prior administration).
  • They want more than the status quo—actual skin in the game, not just promises of US manufacturing.

3. Anatomy of the Intel Deal (12:39–17:16)

• Howard Lutnick’s Role

  • Lutnick spearheads negotiations, seeking out ways to secure a better deal for taxpayers beyond the previous administration's grants.
    • Robbie Whelan: “He’s been going around trying to put his own personal stamp on the CHIPS Act, sort of retrade some of these deals.” (12:46)

• Intel’s Struggles Limit Bargaining Power

  • The government recognizes Intel’s inability to match the increasing manufacturing commitments made by healthier rivals, pushing for another solution.

• The New Arrangement: Equity for Dollars

  • The U.S. government converts nearly $9 billion in CHIPS Act grants into a 10% stake in Intel, making it the company’s largest shareholder.
    • Robbie Whelan: “The solution they came to was, look, we should be getting a share in this company. So when the company profits, eventually, we hope we will share in that profit as well.” (13:17)
  • Memorable moment:
    • President Trump signs the deal with his name “in big letters” on the documents, both proud and symbolic. (01:16–01:29)
    • Lip Bhutan: “He walked in wanting to keep his job and he ended up giving us $10 billion for the United States. So we picked up 10 billion.” (01:29)

4. Details & Implications of the Agreement (15:13–18:38)

• How the Deal Works
  • The government's 10% stake is non-voting: no board seat or direct governance role.
    • Robbie Whelan: “The administration has said that the government will not have a seat on the board and will not be directly involved in governance decisions.” (16:04)
  • However, an "open line of communication" between government and company management is guaranteed.
• The ‘Poison Pill’ Clause
  • If Intel loses at least 51% of its manufacturing business, the U.S. gets an additional 5% of Intel at a discount—set up to firmly incentivize keeping jobs and production domestic.
    • Jessica Mendoza: “A poison pill… says that if Intel loses at least 51% of its manufacturing business, the US government will receive an additional 5% of the company at a discounted share price.” (16:47)
• Future Government Involvement
  • The Trump administration might also push other tech companies to source their chips from Intel, strengthening domestic supply chains.
    • Robbie Whelan: “The Trump administration is going to do its best to help Intel find some customers for this manufacturing capacity.” (17:16)
• Sector-Wide Ramifications
  • Other chip companies like TSMC express anxiety over whether similar deals could be forced upon them. Lutnick reassures compliant companies they're not at risk.
    • Robbie Whelan: “There was a brief panic… Are they going to take us over next?... Secretary Lutnick came out… [to say], they should not worry.” (17:46)

5. What This Means for U.S. Business Policy (18:31–19:24)

• A New Precedent
  • The episode closes reflecting on how this signifies a major shift: the U.S. government isn’t just handing out subsidies but is willing to take direct ownership stakes in vital industries.
    • Robbie Whelan: “If [tech CEOs] hadn’t gotten the message by now… Now they know that’s the strategy… the Trump administration is willing to employ to make sure their agenda succeeds.” (18:38)

Notable Quotes & Memorable Moments

• Trump’s Opening Move:
  • “Five minutes after this segment runs, he goes on to Truth Social and he posts this really dramatic message.”
    — Robbie Whelan (06:18)
• Advising Intel’s CEO:
  • “You’ve got to convince him you’re not a Chinese spy…convince him that it’s in his interest long term to make sure that Intel does not fail.”
    — Robbie Whelan (08:06)
• The Art of the Deal:
  • “He walked in wanting to keep his job and he ended up giving us $10 billion for the United States. So we picked up 10 billion.”
    — Lip Bhutan (01:29)
• Government’s New Role:
  • “We should be getting a share in this company. So when the company profits, eventually, we hope we will share in that profit as well. There shouldn’t be just a free lunch.”
    — Robbie Whelan (13:17)
• State Direction in Tech:
  • “Now they know that that’s the strategy or at least one of the strategies that the Trump administration is willing to employ to… make sure that their agenda succeeds.”
    — Robbie Whelan (18:38)

Timeline of Key Segments

• 00:05–01:40: Introduction and summary of the crisis at Intel
• 03:42–05:58: Introducing major players & the scandal’s origins
• 06:18–07:45: Intel’s decline and Trump’s public challenge
• 08:00–10:24: The pivotal White House meeting
• 10:45–11:09: White House’s broader industrial agenda
• 12:39–14:14: Commerce Secretary's approach to chip companies
• 15:13–16:35: Details of the government stake and deal structure
• 16:38–17:39: The “poison pill” and sector-wide implications
• 18:31–19:24: Reflections on government-business partnerships

Conclusion

This episode offers a rare, insider look at how American technology, national security, and politics intersect in high-stakes boardrooms and backchannels. It reveals a bold new approach where government doesn't just regulate or subsidize but becomes an active shareholder, setting the stage for even closer ties—or conflicts—between Washington and Silicon Valley in the years ahead.