President Donald Trump is signaling a push to channel more investment into American companies, with a focus on strengthening businesses he considers healthy and poised for growth. Speaking to the media at the White House on Monday, Trump said, “I want to get as much as I can.” Trump was quoted saying further, “[I] hope to have many more like Intel.”
In an interview on CNBC’s Squawk Box, Commerce Secretary Howard Lutnick disclosed the Defense Department’s interest in such investments, coming just days after the federal government acquired a 10% stake in Intel in a deal worth around $9 billion.
Lutnick was asked whether the Trump administration might pursue similar investments in other government contractors. “Oh, there’s a monstrous discussion about defense,” he responded. He added that Lockheed, which earns the majority of its revenue from federal contracts, is “basically an arm of the U.S. government.” Now, top Pentagon officials are “thinking about” whether the U.S. should take equity stakes in major defense contractors like Lockheed Martin, Lutnick said.
“But what’s the economics of that? I’m going to leave that to my Secretary of Defense and the deputy Secretary of Defense,” he said, adding “These guys are on it and they’re thinking about it.”
READ: Trump admin eyes 10% stake in Intel as SoftBank invests $2 billion in the chipmaker (
Lutnick noted that President Trump is reconsidering how the U.S. funds its munitions and broader defense programs. “I tell you, the way it has been done has been a giveaway,” he stated, hinting that the Trump administration might be eyeing significant changes to the Pentagon’s annual budget approvals by Congress.
A Lockheed spokesperson told CNBC, “As we did in his first term, we are continuing our strong working relationship with President Trump and his Administration to strengthen our national defense.”
The White House revealed on Friday that it has acquired close to a 10% stake in Intel Corp., turning previously issued government grants into company equity. Trump had earlier remarked, “Intel has been left behind” compared to its rivals in the chipmaking sector, noting that he had raised the idea during a meeting with Intel CEO Lip-Bu Tan earlier this month. “And I said, you know what? I think the United States should be given 10% of Intel, and he said, ‘I would consider that,’ and I said, ‘Well, I’d like you to do that,’” Trump recounted.
However, reflecting on this, Intel on Monday stated that the Trump administration’s 10% stake in the company could pose risks to its operations, potentially affecting sales and its relationships with stakeholders. In a filing with the Securities and Exchange Commission (SEC), Intel warned that international sales might be impacted by the agreement announced Friday, which made the federal government its largest shareholder. The company also noted the deal could trigger legal challenges and draw criticism from foreign governments, business partners, and even its own employees.
READ: Intel CEO wins over Trump, days after the president called for his resignation (
The SEC filing stated, the government stake “could subject the company to additional regulations, obligations or restrictions, such as foreign subsidy laws,” as the company earns about three-quarters of its revenue from overseas sales. The chipmaker also revealed that the federal government’s stake could increase to as much as 15% if specific manufacturing targets are not met. The SEC filing noted that the deal’s structure could lead other government bodies to seek stakes, and that federal objectives might not always align with those of other shareholders. “This will reduce the voting influence of other stockholders,” Intel said.
The announcement by Trump has drawn criticism. Sen. Rand Paul (R-Kentucky) described it as a “terrible idea,” while California Gov. Gavin Newsom (D) said the move makes the U.S. “the socialist republic of America.” But Trump himself praised the deal on Truth Social, noting that he acquired shares valued at roughly $11 billion for “zero” cost and expressed willingness for the U.S. government to pursue similar moves in the future.
“I will make deals like that for our Country all day long,” Trump wrote on Truth Social. “I will also help those companies that make such lucrative deals with the United States. … I love seeing their stock price go up, making the USA RICHER, AND RICHER.”
Intel flagged several potential risks in its SEC filing, noting that government intervention could negatively affect its international sales, which account for 76% of revenue. The company also highlighted other possible challenges, including pushback from investors, employees, customers, suppliers, foreign governments, and competitors, along with the risk of legal action.