Trump announces U.S. deal to take 10% stake in Intel

U.S. President Donald Trump on Friday said the federal government has agreed to acquire a 10% equity stake in Intel, marking one of the most sweeping interventions by the White House in corporate America.According to information,the U.S. will purchase a 9.9% stake in the struggling chipmaker for $8.9 billion at $20.47 a share, nearly $4 below Intel’s closing price of $24.80 on Friday. The acquisition, involving 433.3 million shares, will be funded through $5.7 billion in unpaid CHIPS Act grants and $3.2 billion allocated to Intel under the Secure Enclave program. Intel shares slipped 1.2% in after-hours trading following the announcement.
The deal comes in the wake of a tense meeting earlier this month between Intel CEO Lip-Bu Tan and President Trump. The president had previously demanded Tan’s resignation over Intel’s links with Chinese firms. “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.
Commerce Secretary Howard Lutnick confirmed the transaction on X, stating, “The United States of America now owns 10% of Intel,” and called the agreement fair to both the company and American taxpayers. Officials emphasized that the government’s stake will be non-voting, ensuring it will not interfere in Intel’s operational decisions.The equity investment is broadly in line with the CHIPS Act funds that Intel is set to receive for building advanced semiconductor facilities in the U.S. The deal underscores the administration’s strategy of tying federal support to direct ownership stakes in critical industries.

BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies.

This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge.

Thanks to Intel… pic.twitter.com/AYMuX14Rgi

— Howard Lutnick (@howardlutnick) August 22, 2025

The move follows a series of unusual arrangements by the Trump administration, including securing a share of Nvidia’s China sales, negotiating a “golden share” with veto rights in the Nippon Steel–U.S. Steel transaction, and preparing for the Pentagon to become the largest shareholder in a rare-earth mining company. Critics argue such interventions could create new risks for corporations and blur the lines between public policy and corporate governance.For Intel, the federal backing could provide crucial financial stability as it struggles to revive its foundry business and offset a weak product roadmap. The company posted an $18.8 billion annual loss in 2024, its first since 1986, and has not generated positive adjusted free cash flow since 2021,noted experts.
Tan, who took over as Intel’s CEO in March, has been tasked with steering the company through one of its most challenging periods in decades. Despite a recent $2 billion capital injection from SoftBank Group, analysts say Intel’s turnaround hinges on restoring competitiveness in advanced chip manufacturing and regaining customer confidence.Trump has framed the government’s intervention in Intel as part of a broader national security push to strengthen U.S. control over critical technologies. “We’re making sure America leads in semiconductors, rare earths, and artificial intelligence. These are the industries of the future—and they will be made in the USA,” he said.

(Business Correspondent)