Trump's Pivot to State Capitalism: A Corporate Portfolio

Blurring the Lines Between Government and Business

The Trump administration has spent the last year aggressively reshaping the relationship between the U.S. government and private industry. This new approach involves a level of economic intervention rarely seen in modern American politics, from using tariffs and regulatory pressure to favor specific firms to taking direct ownership stakes in key companies.

This strategy marks a decisive turn toward state capitalism, a model more commonly associated with countries like China and Russia. The administration has directly negotiated for equity or a share of profits in nearly a dozen companies, funneling billions in taxpayer dollars to secure government influence. The trend appears set to accelerate, signaling a fundamental shift in U.S. economic policy.

Here is a breakdown of the companies where the Trump administration is now a significant investor.

The Push for Tech and Semiconductor Dominance

In the global race for technological supremacy, the administration has invested heavily to control the production of advanced semiconductors and AI technology.

Intel

In one of the most high-profile deals, the Trump administration acquired a nearly 10% stake in semiconductor giant Intel, valued at around $11 billion. This move made the U.S. government Intel's largest shareholder. While President Trump claimed the shares were acquired for "nothing," the deal was facilitated by grants approved under the Biden administration's CHIPS and Science Act, effectively trading taxpayer funds for government equity.

Figure 1: President Trump meets with Intel leadership, highlighting the government's deepening involvement in the domestic semiconductor industry.

Nvidia

The administration has taken an unconventional approach with Nvidia, the world's most valuable chipmaker. In December, Trump reversed some of the Biden administration's export controls, allowing Nvidia to sell advanced chips to China. In return, the U.S. government will receive a 25% cut of all revenue from those sales. This deal expanded upon an earlier agreement for a 15% share of China-bound sales from both Nvidia and its competitor, AMD.

xLight

To bolster domestic semiconductor manufacturing capabilities, the administration took an equity stake in xLight, a Silicon Valley lithography startup. The Commerce Department has committed up to $150 million to the firm, which is developing advanced chipmaking processes. The exact size of the government's stake has not been disclosed.

Securing Critical Minerals and Supply Chains

A central pillar of the administration's industrial strategy is reducing America's reliance on foreign nations, particularly China, for essential raw materials. This has led to a series of government investments in mining and refining operations.

Atlantic Alumina Co. (ATALCO)

In January, the government announced a $150 million equity stake in ATALCO, a Louisiana-based gallium producer. Gallium is a critical component in chipmaking, and the U.S. currently has no domestic production. The investment aims to counter China's export restrictions on the metal, with ATALCO expected to eventually satisfy all of America's gallium demand.

Korea Zinc

The Trump administration secured a 40% equity stake in a new Tennessee refinery to be built by South Korean firm Korea Zinc. The deal also gives the U.S. government and American investors a 10% stake in the parent company. Set to open in 2029, the refinery is projected to produce 540,000 metric tons of critical minerals annually. Furthermore, Washington will gain priority access to Korea Zinc's global output starting in 2026.

Lithium Americas

The U.S. government now owns a stake in Lithium Americas, the company developing the Thacker Pass project—one of the nation's largest known lithium deposits. While the project received bipartisan support and a $2.3 billion federal loan under the Biden administration, the Trump administration re-evaluated the terms. The final deal involved releasing the loan funds in exchange for an equity stake for the government, aimed at reducing U.S. dependence on China for lithium processing.

MP Materials

To revive the domestic rare-earths industry, the administration struck a multibillion-dollar deal making the Defense Department the largest shareholder in MP Materials. The company operates the only active rare-earths mine in the United States. The agreement includes a 15% stake for the Pentagon, which will also purchase the output from a new rare-earth magnet factory and establish a price floor to guarantee its viability.

Trilogy Metals

In a push to expand domestic mining, the administration has invested tens of millions of dollars in Trilogy Metals, a Canadian firm behind a controversial copper and zinc project in Alaska. The project, which requires building a road through protected wilderness, was previously opposed by the Biden administration but is now moving forward with direct government backing.

Vulcan Elements & ReElement Technologies

As part of its rare-earths initiative, the administration has also taken stakes in two startups, Vulcan Elements and ReElement Technologies. The deal involves over $700 million in Defense Department loans and $50 million in federal incentives. In exchange, the Pentagon will receive warrants in both firms, and the Commerce Department will get a $50 million equity stake in Vulcan Elements. The companies aim to produce 10,000 metric tons of magnets annually.

Reshaping Legacy Industries and Energy

The administration's intervention extends to traditional sectors like steel and nuclear energy, where it has asserted direct control over corporate decision-making.

U.S. Steel

The administration's first major foray into state capitalism involved the takeover of U.S. Steel by Japan's Nippon Steel. Instead of blocking the deal, Trump negotiated a "golden share," which grants the U.S. president veto power over the new company's investment and production decisions. Two Commerce Department officials were appointed to the board to represent the government's interests.

Figure 2: President Trump addresses workers at a U.S. Steel facility, underscoring his administration's direct intervention in the American steel sector.

Westinghouse

To jump-start the civilian nuclear power industry, the U.S. government established a "strategic partnership" with Westinghouse Electric, the country's largest reactor manufacturer. The deal gives the government an option to take an 8% stake in the company, with the potential for a larger share if Westinghouse goes public. The partnership is designed to spur at least $80 billion in new investment in nuclear power.