They want a source of chips for the wars they want to conduct that is not either controlled by the party they want to go war with, or way way closer to the party they want to go to war with than they are. Buying a chunk of Intel is a way of making sure they do the things the government wants that will lead to that outcome. Or at least so the theory goes; I've got my own cynicism on this matter and wouldn't dream of tamping down on anyone else's.
Right now if the US wants to go to war with China, or anyone China really really likes, they can expect with high probability to very quickly encounter major problems getting the best chips. AIUI the world has other fab capacity that isn't in Taiwan, and some of it is even in the US, but they're all on much older processes. Some things it's not a problem that maybe you end up with an older 500MHz processor, but some things it's just a non-starter, like high-end AI.
Sibling commenters discussing profits are on the wrong track. Intel's 2024 revenue, not profits, was $53.1 billion. The Federal Government in 2024 spent $6,800 billion. No entity doing $1.8 trillion in 2024 in deficit spending gives a rat's ass about "profits". The US Federal government just spends what it wants to spend, it doesn't have any need to generate any sort of "profits" first. Thinking the Federal government cares about profits is being nowhere near cynical enough.
Right now if the US wants to go to war with China, or anyone China really really likes, they can expect with high probability to very quickly encounter major problems getting the best chips. AIUI the world has other fab capacity that isn't in Taiwan, and some of it is even in the US, but they're all on much older processes. Some things it's not a problem that maybe you end up with an older 500MHz processor, but some things it's just a non-starter, like high-end AI.
Sibling commenters discussing profits are on the wrong track. Intel's 2024 revenue, not profits, was $53.1 billion. The Federal Government in 2024 spent $6,800 billion. No entity doing $1.8 trillion in 2024 in deficit spending gives a rat's ass about "profits". The US Federal government just spends what it wants to spend, it doesn't have any need to generate any sort of "profits" first. Thinking the Federal government cares about profits is being nowhere near cynical enough.