In a move described as “historic” by the White House, Intel has agreed to give the U.S. government a 10% stake in the company, President Donald Trump announced Friday.
The deal underscores the administration’s growing influence over the domestic semiconductor industry and signals a new era of government involvement in corporate strategy.
Speaking to reporters, Trump said Intel CEO Lip-Bu Tan consented to the agreement during a meeting at the White House earlier this month. “He walked in wanting to keep his job, and he ended up giving us $10 billion for the United States,” Trump remarked. On his Truth Social account, the president hailed the agreement as “a great deal for America and also a great deal for Intel.”
Intel confirmed the arrangement in a statement late Friday afternoon. According to the company, the U.S. government will invest $8.9 billion in Intel common stock, purchasing 433.3 million primary shares at $20.47 each, equivalent to a 9.9% stake. Including previous CHIPS Act grants and other funding, the government’s total investment in Intel stands at $11.1 billion.
The breakdown includes $5.7 billion in grants awarded under the 2022 CHIPS and Science Act, $2.2 billion already disbursed, and another $3.2 billion as part of the Defense Department’s Secure Enclave program, which supports semiconductor manufacturing within the U.S. Despite the government’s significant equity stake, Intel emphasized that Washington will hold no board seats or governance rights. Instead, it agreed to vote in line with the company’s board on shareholder matters, with limited exceptions.
Commerce Secretary Howard Lutnick framed the deal as a continuation of earlier commitments. “We’ll deliver the money, which was already committed under the Biden administration, and we’ll get equity in return,” he told CNBC earlier this week. After the announcement, Lutnick posted on X, “The U.S. now owns 10% of Intel — a historic agreement.”
The decision represents an escalation in the Trump administration’s efforts to bring semiconductor manufacturing back to American soil. Intel, once the leader in global chip production, has struggled in recent years, losing ground to rivals such as Nvidia. The latter has surged ahead in producing high-demand GPUs for artificial intelligence, becoming the world’s most valuable company with a market capitalization exceeding $4 trillion.
Intel, meanwhile, has seen revenue decline and reported net losses in the first two quarters of this year. It is investing more than $28 billion in two chip factories in Ohio, though delays and uncertain demand cloud the projects. Analysts warn that the success of these facilities depends on securing stable customers and competitive processes.
Chris Miller, a Tufts University professor and author of Chip War: The Fight for the World’s Most Critical Technology, noted that the equity deal raises new questions. “We still don’t know who will be the customers for Intel’s factories, or how this financing arrangement will shape their competitive position,” he said. “It’s too early to tell if this is a boon for Intel or another complication.”
The agreement also follows recent tensions between Trump and Intel’s leadership. Earlier this month, the president criticized CEO Tan for investments in Chinese tech firms and suggested he should step down. Days later, Tan met with Trump at the White House, after which the president softened his tone, calling him “a success.”
For now, the government’s stake in Intel marks a turning point for U.S. industrial policy. By linking federal funding to equity ownership, the Trump administration is reshaping the balance of power between Washington and the country’s most vital technology companies. Whether this bold experiment revives Intel’s fortunes or further complicates its path forward remains to be seen.
Leo Cruz brings sharp insights into the world of politics, offering balanced reporting and analysis on the latest policies, elections, and global political events. With years of experience covering campaigns and interviewing world leaders, Leo ensures readers are always informed and engaged.
