U.S. Government Acquires 10% Equity Stake in Intel for $5.7B
Intel’s CFO, David Zinser, confirmed the semiconductor giant’s receipt of a $5.7 billion investment from the U.S. government on August 28, 2025. This unprecedented deal grants the federal government a 10% equity stake in Intel, marking the first installment of an $8.9 billion government investment in Intel’s common stock.
The deal, unveiled by President Trump on August 22, transforms previously awarded but unpaid CHIPS Act grants into an equity position. This is supplemented by an additional $3.2 billion from the Defense Department’s Secure Enclave program. The government’s purchase comprises 433.3 million shares at $20.47 per share, a figure below the current market price.
White House Press Secretary, Karoline Leavitt, stated that the deal’s details are still “being ironed out by the Department of Commerce.” Intel’s CEO, Lip-Bu Tan, underscored the company’s dedication to ensuring “the world’s most advanced technologies are American made.” This agreement signifies a considerable shift in U.S. industrial policy, with the government taking an active role in the private semiconductor sector amid escalating competition with China.
Source: CNBC