Historic Acquisition: US Government Secures 10% Stake in Intel for $8.9B
In an unprecedented move, the Trump administration announced on Friday that the U.S. government has acquired a 9.9% stake in Intel Corporation for $8.9 billion, making it the struggling chipmaker’s largest shareholder.
President Trump confirmed that Intel CEO Lip-Bu Tan agreed to the deal during their White House meeting, converting previously awarded CHIPS Act grants into equity shares. The government will purchase 433.3 million shares at $20.47 per share, funded through $5.7 billion in unawarded CHIPS Act grants and $3.2 billion from the Defense Department’s Secure Enclave program.
Despite the stake, the government will have no board representation and has pledged to vote with Intel’s current leadership on most matters. This marks the first time Washington has taken an ownership stake in a major Silicon Valley company outside of a financial crisis.
The deal aims to bolster domestic semiconductor manufacturing amid intensifying competition with China in the AI and chip sector.