The U.S. now owns a big chunk of Intel. That’s a huge deal.

This episode of Planet Money from NPR explores the U.S. government's increasing involvement in industrial policy, specifically focusing on the microchip industry. The hosts, Jeff Guo and Keith Romer, use the analogy of a party planner to explain the government's role in setting the stage for economic activity. They discuss the CHIPS Act, designed to incentivize microchip manufacturers to build factories in the U.S., and the potential pitfalls of government intervention, referencing the Solyndra scandal. The episode then delves into President Trump's unique approach, highlighting the deal where the U.S. government became a major shareholder in Intel. The hosts analyze the implications of this deal, including potential benefits and risks, and feature insights from economist Anne Harrison on the broader impacts of government ownership in companies. The episode concludes by examining the potential for both success and failure in the U.S. government's experiment with industrial policy and its impact on the semiconductor industry.