US Acquires 10% Stake in Intel as Part of Trump's Tech Initiative

U.S. Government Acquires 10% Stake in Intel

The United States government has made a significant investment in Intel, acquiring an approximately 10% stake in the company through an $8.9 billion purchase of common stock. This move marks a major shift in the relationship between the federal government and one of the country's leading semiconductor manufacturers.

President Donald Trump announced the deal on his social media platform, Truth Social, stating that the U.S. now "fully owns and controls 10% of INTEL, a Great American Company." He emphasized that the transaction was a win for both the government and Intel, highlighting that the U.S. paid nothing for the shares, which are now valued at around $11 billion.

The deal was reportedly negotiated directly with Intel’s CEO, Lip-Bu Tan, who agreed to the terms during discussions in the Oval Office. Trump expressed hope that similar agreements could be reached with other companies in the future, reinforcing his focus on strengthening domestic manufacturing and securing technological leadership.

This investment is part of a broader strategy to bolster semiconductor production in the U.S. and ensure the country remains a global leader in chipmaking. The move aligns with Trump’s emphasis on national security, as semiconductors play a critical role in everything from consumer electronics to military systems.

Trump has also been vocal about his relationships with other tech leaders, such as Nvidia CEO Jensen Huang. He has used these connections as leverage in trade negotiations and to encourage U.S. companies to invest domestically. Recently, he proposed imposing 100% tariffs on imported semiconductors unless companies commit to manufacturing in the U.S.

The deal comes amid ongoing scrutiny of Intel’s leadership and operations. Two weeks ago, Trump called for the immediate resignation of Intel’s CEO following reports about alleged ties to China. However, the new agreement positions the U.S. as a passive shareholder without any voting rights or board representation, according to Intel’s press release.

The funding for the equity stake came from existing grants under the CHIPS and Science Act, as well as additional support from the Department of Defense through the Secure Enclave program. The government purchased 433.3 million shares at $20.47 per share, representing a 9.9% ownership stake.

Intel’s CEO, Lip-Bu Tan, stated that the company is committed to ensuring advanced technologies are developed and manufactured in the U.S. He described the deal as a positive step for the company and its long-term goals.

Trump has indicated that more deals like this could follow, with the administration exploring opportunities to take stakes in other critical industries. Two officials familiar with White House discussions confirmed that the focus is on converting grant funding into equity, emphasizing the benefits of such arrangements for both the government and private sector.

The stock market responded positively to the news, with Intel’s shares rising 7% on the day of the announcement. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick confirmed the deal, noting that it would help stabilize Intel and support domestic chip production.

Despite the investment, some analysts question whether the government’s stake will directly address Intel’s challenges, particularly its struggle to compete with industry leaders like TSMC. Bessent clarified that the administration does not plan to pressure other companies to use Intel’s chips, focusing instead on supporting the company’s long-term stability.

This is not the first time Trump has engaged in unusual deals with semiconductor companies. Earlier this month, Nvidia and AMD agreed to pay 15% of their chip sales in China to the government in exchange for export licenses, following concerns over national security risks.

As the U.S. continues to navigate its role in the global semiconductor industry, the Intel investment represents a bold move toward reshaping the landscape of technology and manufacturing in the country.