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President Trump Announces US to Take Nearly 10% Stake in Intel

By  |  August 24, 2025

President Donald Trump said Friday that the United States will acquire a 10% equity stake in Intel as part of a deal that converts government grants into company shares, according to Reuters. The agreement represents the latest example of the White House’s direct involvement in private industry.

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    Under the deal, the government will purchase 433.3 million Intel shares at $20.47 each, totaling $8.9 billion. That price is nearly $4 below Intel’s Friday closing of $24.80, per Reuters. The investment will be funded by $5.7 billion in unallocated grants from the Biden-era CHIPS Act and $3.2 billion tied to the Secure Enclave program, also introduced under President Joe Biden. The stake amounts to about 9.9% of the company.

    The decision marks a notable shift in relations between Trump and Intel Chief Executive Lip-Bu Tan. Trump had previously called for Tan’s resignation over his links to Chinese companies. Following a White House meeting on Friday, Trump claimed the outcome delivered significant financial value for the country. “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 later described the arrangement as “fair to Intel and fair to the American People.”

    Intel’s stock climbed 5.5% during regular trading on Friday and gained an additional 1% in after-hours trading, according to Reuters.

    Related: Bernie Sanders Endorses Trump Plan for Government Stakes in Chipmakers

    The deal follows other recent interventions by Washington. The U.S. government previously secured a share of revenue from Nvidia’s sales of AI chips to China, obtained a controlling stake in rare earth producer MP Materials, and negotiated a “golden share” with veto power in U.S. Steel’s proposed sale to Japan’s Nippon Steel, per Reuters. Critics argue that such measures add new risks for corporations navigating federal oversight.

    Intel is under growing pressure to revitalize its business after reporting an $18.8 billion loss in 2024, its worst since 1986. The company has struggled to regain competitiveness in the semiconductor market, losing ground to rivals like Taiwan’s TSMC in chip manufacturing and Advanced Micro Devices in processors. Analysts say that government backing may provide Intel with breathing room to stabilize, but warn that its foundry unit will still face steep challenges.

    The U.S. government’s investment is structured as passive ownership, meaning it will not hold a board seat, Intel said. Officials will be required to vote alongside the company’s board on shareholder matters, except under limited circumstances. The agreement also includes a five-year warrant allowing Washington to acquire another 5% stake at $20 per share if Intel’s foundry business falters.

    Industry observers remain cautious. “Without government support or another financially stronger partner, it will be difficult for the Intel foundry unit to raise enough capital to continue to build out more Fabs at a reasonable rate,” said Daniel Morgan, senior portfolio manager at Synovus Trust. He added that Intel must “catch up with TSMC from a technological perspective to attract business.”

    The move comes days after Japan’s SoftBank took a $2 billion stake in Intel, highlighting both international and domestic efforts to bolster the struggling U.S. chipmaker.

    Source: Reuters