The United States government has taken a near 10% stake in Intel, investing $8.9 billion in the struggling chipmaker. The announcement was made jointly by President Donald Trump and Intel on Friday.
Trump hailed the agreement as a landmark achievement, declaring on Truth Social,“It is my Great Honour to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future.”
Trump said the deal, personally negotiated with Intel’s Chief Executive Officer Lip-Bu Tan, came at no cost to taxpayers. “The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL,” he wrote.
Boost to US semiconductor ambitions
The stake is part of Trump’s strategy to strengthen America’s role in global chipmaking, a sector seen as central to national security and technological leadership. Semiconductors are vital for everything from smartphones and electric vehicles to advanced defence systems.
The government’s shares were purchased at $20.47 apiece, amounting to 433.3 million shares. The investment is funded by unallocated grants from the Biden-era CHIPS and Science Act and a $3.2 billion allocation from the Pentagon’s Secure Enclave programme.
Commerce Secretary Howard Lutnick welcomed the deal, writing on X that “this historic agreement strengthens US leadership in semiconductors, which will both grow our economy and help secure America’s technological edge.”
US will have no role in Intel governance
Despite the sizeable stake, the US government will not be directly involved in Intel’s decision-making. The company clarified in a press release that the government’s investment carries no board representation, governance rights, or privileged access to company information.
Intel’s CEO Lip-Bu Tan said the company remained “deeply committed to ensuring the world’s most advanced technologies are American made.” Tan, who took over in March, has been attempting to turn around the firm, which recently announced plans to cut 15% of its workforce.
Market response
Intel’s share price rose 7% on Friday following the announcement, as investors viewed the deal as a stabilising force for the company. The agreement comes at a time when global competition in semiconductors is intensifying, with Taiwan’s TSMC and South Korea’s Samsung maintaining a lead in advanced chip production.
Japan’s SoftBank also pledged a $2 billion investment in Intel earlier this week, signalling broader international support for the firm’s turnaround strategy.
The Intel stake may not be a one-off. Trump said he hopes to strike similar arrangements with other American companies in critical industries, calling it “a win-win deal.” His administration has already negotiated unusual agreements with Nvidia and AMD, which recently agreed to share a portion of their China-related sales with the government in exchange for export licences.
