Trump Announces U.S. Government to Take 10% Stake in Intel

Aug 24, 2025, 2:03 AM

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President Donald Trump declared on Friday that the US government has secured a 10% stake in Intel, marking an unprecedented move in public-private collaboration. The deal, finalized through $11.1 billion in federal grants, aims to strengthen American leadership in semiconductor manufacturing and counter China's technological rise.

The agreement involves converting $5.7 billion in unspent CHIPS and Science Act grants and $3.2 billion from the Defense Department’s Secure Enclave program into 433.3 million shares of Intel common stock, valued at $20.47 per share. This equates to a 9.9% ownership stake, with the government pledging not to interfere in Intel’s operations or hold voting rights. Commerce Secretary Howard Lutnick confirmed the deal on X, calling it a "historic agreement" that enhances US semiconductor dominance.

Intel CEO Lip-Bu Tan agreed to the terms after Trump pressured him to resign earlier this month over past investments in Chinese tech firms. The CEO praised Trump for "driving historic investments in a vital industry," while critics warn the move could distort market dynamics and pressure other companies to favor Intel’s products. Analysts note that Intel, once a chipmaking leader, now faces stiff competition from rivals like Nvidia and TSMC, with its stock down 60% since peaking during the pandemic[@4].

The deal reflects Trump’s broader strategy to reshape global supply chains, requiring firms like Nvidia and AMD to pay 15% of China sales to the US government in exchange for export licenses. While some Democrats support the move as a safeguard against Chinese tech dominance, others question its efficacy given Intel’s recent financial struggles, including $19 billion in losses last year[@4].

This marks one of the first instances of the Trump administration converting federal grants into equity stakes, echoing past interventions like the 2008 GM bailout. However, unlike that crisis-driven investment, this deal occurs amid a stable economy and raises concerns about overreach into private sector decision-making. With Intel planning to invest $28 billion in US manufacturing facilities, the government’s stake could either stabilize or complicate its recovery efforts[@1].

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