US Government Acquires 10% Stake in Intel for $8.9 Billion
The Trump administration has made an unprecedented move by acquiring a 10% stake in Intel Corporation. This was achieved through an $8.9 billion investment, purchasing 433.3 million shares at $20.47 per share. This strategic move has positioned the U.S. government as one of Intel’s largest shareholders. The primary aim is to bolster domestic semiconductor manufacturing.
Commerce Secretary Howard Lutnick confirmed the deal. This comes at a time when Intel is grappling to compete in the AI chip market against formidable rivals like Nvidia. The investment is designed to support Intel’s planned manufacturing facilities in Ohio. Moreover, it aims to ensure advanced semiconductor technologies remain American-made. President Trump stated on Truth Social, “the United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars.”
Additionally, the government will receive a warrant to purchase an additional 5% stake if Intel ceases to be the majority owner of its foundry business. Intel CEO Lip-Bu Tan emphasized the company’s commitment to ensuring “the world’s most advanced technologies are American made”. However, Intel clarified that the government will not have board seats or governance rights.
Source: CNBC