The U.S. government’s strategic $8.9 billion equity stake in Intel redefines industrial policy in the semiconductor sector, emphasizing national security and technological sovereignty amid rising geopolitical tensions with China and market dominance by TSMC. This unprecedented intervention aims to bolster Intel’s competitive edge in advanced chip manufacturing, aligning state interests with private enterprise. As semiconductor valuations increasingly reflect geopolitical risks and AI demand, the U.S. model of state-backed investment may set a precedent for industry resilience and innovation. Ultimately, this collaboration highlights the critical intersection of technology, national security, and economic strategy, where government action becomes essential for securing a competitive future in tech.