President Donald Trump announced on Friday that the United States will take a nearly 10% stake in Intel, marking a dramatic intervention in corporate America as the White House seeks to shore up domestic chip manufacturing.
The federal government will purchase 433.3 million Intel shares, equivalent to a 9.9% stake, for $8.9 billion (€7.5 billion) at a discounted price of $20.47 per share. The deal represents about a $4 discount compared to the company’s closing price of $24.80 on Thursday. Funding will be drawn from $5.7 billion in unpaid CHIPS Act grants and $3.2 billion from Intel’s Secure Enclave program.
While shares of the California-based chipmaker initially fell 1.2% in extended trading following the announcement, the agreement is being positioned by the White House as a long-term strategic move. Commerce Secretary Howard Lutnick confirmed completion of the deal in a post on X, declaring: “The United States of America now owns 10% of Intel. This deal is fair to Intel and fair to the American people.”
President Trump emphasized that the equity stake matches the amount Intel was set to receive through federal grants to expand semiconductor plants in the US. “He walked in wanting to keep his job and he ended up giving us $10 billion for the United States. So we picked up $10 billion,” Trump said, referring to a recent meeting with Intel Chief Executive Lip-Bu Tan, whose leadership he had earlier questioned over alleged ties to Chinese firms.
The investment is the latest in a string of unconventional government deals with major corporations. Recent arrangements have included securing a 15% cut of Nvidia’s sales of certain chips to China, a Pentagon-backed stake in a rare-earth mining company, and a “golden share” in US Steel as part of Nippon Steel’s planned takeover.
Critics, however, warn that such moves create new categories of corporate risk. Officials have said the administration does not intend to pursue similar equity stakes in other chipmakers like TSMC or Micron, which are already expanding US operations.
Intel has faced mounting challenges as it struggles to compete with rivals such as Taiwan’s TSMC. Once an industry leader, the company recorded a loss of $18.8 billion in 2024—its first annual loss since 1986—and has lagged in both manufacturing capacity and technological innovation.
Analysts believe government support may give Intel breathing space to revive its foundry business, but structural issues remain. “Without government support or another financially stronger partner, it will be difficult for Intel to raise enough capital to continue building out new fabs,” said Daniel Morgan, senior portfolio manager at Synovus Trust.
SoftBank also announced a separate $2 billion investment in Intel earlier this week, but experts say such cash infusions may not be enough to reverse the company’s long-term decline.
The administration confirmed that the government’s 10% stake will be non-voting, meaning it will not influence how the company is managed. Intel declined to comment.
