US Government Acquires 10% Stake in Intel with $8.9B Investment
The United States government has acquired a 10% stake in Intel Corporation, purchasing 433.3 million shares at $20.47 each in a deal worth approximately $8.9 billion, Commerce Secretary Howard Lutnick announced Friday. This investment signifies the Trump administration’s expanding role in the private sector and its strategic approach to domestic semiconductor manufacturing.
The government’s interest in Intel stems from the company’s unique position as the only U.S. firm capable of producing advanced chips domestically, making it crucial for national security and technological independence. The investment comes in the wake of a meeting between CEO Lip-Bu Tan and President Donald Trump, where they discussed the future of the struggling chipmaker.
Intel shares saw a surge of about 2% in Monday premarket trading, building on Friday’s 5.5% jump following the government investment announcement. This deal underscores the administration’s commitment to reshoring critical technology manufacturing and reducing dependence on foreign chip production.
Source: CNBC