After Intel, who is Trump targeting? Senior officials hint at the military industry and shipbuilding, with Lockheed Martin being named

After announcing a 10% equity acquisition agreement with Intel last week, the Trump administration is considering applying this government equity holding model to other key industries.

According to CCTV News, U.S. Secretary of Commerce Wilbur Ross disclosed on Tuesday that the Trump administration is interested in acquiring stakes in defense companies and is considering investing in top U.S. defense contractors, specifically naming Lockheed Martin.

U.S. Treasury Secretary Steven Mnuchin hinted on Wednesday that companies in critical industries such as shipbuilding may become the next targets, emphasizing that these are key industries where the U.S. must achieve self-sufficiency. He ruled out the possibility of government investment in Nvidia, which is also a chip company like Intel.

This move marks a significant upgrade in the Trump administration's efforts to achieve its economic goals through government control of the private economy, but it has also sparked fierce criticism, including from some conservatives, who warn that it goes against free market principles.

Mnuchin Hints at More Industries as Targets

Last Friday, President Trump announced that his administration had acquired approximately $11 billion worth of Intel shares without spending a dime. Intel confirmed on the same day that through funding and contributions from the CHIPS Act, the U.S. government would invest a total of $11 billion to acquire about 10% of Intel shares.

Mnuchin confirmed in a television interview on Wednesday that after reaching the $11 billion equity deal with Intel, the Trump administration may be interested in acquiring stakes in companies in other industries.

He hinted that other reshaping industries, such as shipbuilding, could become targets for government investment, stating that these are key industries that must achieve self-sufficiency.

When asked whether further acquisitions of stakes in other chip companies, such as Nvidia, were being considered, Mnuchin explicitly denied that Intel was within the scope of consideration. He said:

“I don’t think Nvidia needs financial support. So, you know, that doesn’t seem to be on the table right now, but are there other industries we are reshaping? Like shipbuilding. Of course. There could be such things. These are all key industries where we must achieve self-sufficiency in the U.S.”

Mnuchin compared the COVID-19 pandemic to a "test version" of a "kinetic war," emphasizing that the pandemic exposed weaknesses in the U.S. supply chain. He said, “80-90% of pharmaceutical precursors are produced overseas, which is unacceptable.”

Pentagon Considers Acquiring Stakes in Defense Contractors

Ross revealed to the media on Tuesday that senior officials at the Department of Defense are considering whether to acquire stakes in major defense contractors like Lockheed Martin.

When asked whether the U.S. government is considering reaching equity acquisition agreements with defense contractors, Ross stated that discussions on this matter are intense. He pointed out:

“97% of Lockheed Martin's revenue comes from the U.S. government; they are basically a department of the U.S. government. They manufacture sophisticated weaponry. But how economically viable is this? I will leave that question to the Secretary of Defense and the Deputy Secretary. They are studying this matter, and they are considering it.”

Ross also said that the Trump administration is rethinking how the U.S. government should fund arms and other defense capabilities, stating, “What I want to say is that we need to have a lot of discussions about how to fund weapon procurement,” and claimed, “The past practice has always been to give it away.” A spokesperson for Lockheed Martin responded in a statement on Tuesday:

"As we did during President Trump's first term, we are continuing to maintain a strong working relationship with President Trump and his administration to strengthen our defense."

The U.S. Department of Defense did not comment on this.

Policy Sparks Divisions Within the Party

Republicans in Congress have mixed views on the White House's move to acquire a stake in Intel.

Nebraska Republican Congressman Don Bacon stated, "The U.S. federal government should not acquire companies." One of the main proponents of the CHIPS Act, Indiana Republican Senator Todd Young, also believes the government should not reuse this strategy.

Young said, "The intent of the law is not for the government to acquire equity, but the purpose of the law is to ensure that we enhance economic security and national security, which is exactly what the government is trying to advance."

Critics warn that government ownership could lead to corporate decisions being increasingly driven by political rather than business considerations.

Kentucky Republican Senator Rand Paul questioned on social media, "If socialism is government ownership of the means of production, then isn't government owning part of Intel a step towards socialism?"

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