Trump Administration Secures 10% Stake of Intel in $8.9 Billion Deal

President Donald Trump announced that the federal government has acquired a direct 10% stake in semiconductor giant Intel Corporation. 

The deal, valued at $8.9 billion, has already appreciated to nearly $11 billion, underscoring Washington’s strategic bet on domestic chipmaking.

Trump emphasized that the acquisition did not come from “direct taxpayer money,” but was instead structured through existing federal funding mechanisms tied to semiconductor incentives. “This is about ensuring America’s future in technology remains American,” the president declared.

According to Commerce Secretary Harold Lotnick, the U.S. purchased 433.3 million Intel shares at $20.47 per share, a discount to the market price, giving the government a 10% equity stake in the company.

Roughly $5.7 billion of the purchase was financed through CHIPS Act grants.

An additional $3.2 billion came from programs focused on secure chip manufacturing.

The agreement also grants Washington an option to acquire an additional 5% stake if Intel loses control of its semiconductor manufacturing division.

Intel welcomed the investment but clarified that the U.S. government will not hold a board seat or governance rights. In its statement, the company underscored its commitment to keeping advanced semiconductor production “Made in America” while moving ahead with plans to construct new fabs in Ohio. However, construction delays mean those facilities may not be operational until 2030.

The government’s stake in Intel marks a departure from traditional federal support for industry, which typically relied on subsidies and tax incentives. Lotnick described the approach as a new model of public-private partnership, saying:

“The United States is no longer content with simply funding companies. We are now securing ownership returns that reflect our national interest.”

Analysts note that the move could reshape how Washington engages with strategically vital sectors, particularly those tied to national security and technological supremacy.

The deal comes amid heightened competition in the global semiconductor industry. Japan’s SoftBank recently invested $2 billion into chip technologies, while Taiwan Semiconductor Manufacturing Company (TSMC) remains the world’s most crucial supplier, producing chips for Apple, Nvidia, and other tech giants.

By taking a direct stake in Intel, the U.S. aims to bolster domestic production and reduce reliance on overseas suppliers, particularly amid growing geopolitical tensions in East Asia.

The government has also announced an $8 billion grant under the CHIPS Act, signed into law in 2022, to support Intel’s long-term manufacturing projects. The funding is intended to accelerate R&D in advanced nodes and secure supply chains critical to defense and civilian applications.