Former Trump economic adviser Stephen Moore warned Monday that the Biden administration’s decision to take a 10% stake in Intel Corporation is a dangerous step toward government overreach. Appearing on Fox Business Network’s Varney & Co., Moore said the CHIPS Act represents “privatization in reverse” and called on President Biden to repeal all subsidies to the semiconductor industry.
“Whoever pays the piper, plays the tune,” Moore said. “If the government’s taking an ownership of this, I don’t care what they say, I think they’re going to start directing what Intel does, and I think it’ll be a really bad choice, Mr. President.”
Moore criticized the CHIPS Act’s massive federal subsidies, arguing the government has no track record of successful investment. “Since when does the government invest? It misinvests,” he stated. “Every time the government makes an investment, it’s a bad deal for taxpayers.”
The Biden administration’s 10% stake in Intel stems from a series of subsidies aimed at boosting domestic chip production. However, Moore said that Intel, despite receiving tens of billions in taxpayer funds, is still suffering “record losses.” He added that continued public investment is only delaying an inevitable market correction.
“The CHIPS Act was a total disaster,” Moore said bluntly. “We ought to basically let the free market system work, and it’s going to be a disaster” if subsidies continue. He called for a full repeal of the legislation and the elimination of federal involvement in semiconductor manufacturing.
Moore’s remarks reflect growing concern among conservative economists that the Biden administration is using industrial policy to centralize control over key industries—at taxpayer expense. The federal government’s equity stake in a private tech firm, he warned, opens the door for direct political influence over corporate decisions.
“The government should be divesting, not buying in,” Moore concluded. “Get rid of all of the subsidies for the chip industry and let the free market work.”
