Unprecedented Deal: U.S. Government Acquires 10% Stake in Intel
In a groundbreaking move that signifies a major shift in government-business relations, the Trump administration announced on Friday that the U.S. government will acquire a 10% stake in Intel Corporation. Valued at $11.1 billion, this deal is unprecedented, making Intel the first major U.S. corporation to cede partial government ownership in exchange for federal funding.
The stake will be funded through a combination of resources. These include $5.7 billion in CHIPS Act grants, $3.2 billion from the Defense Department’s Secure Enclave program, and an additional $2.2 billion in grants already received. As per the agreement, the government will purchase 433.3 million shares at a rate of $20.47 per share. However, it will not have any board representation or governance rights, agreeing to vote in line with Intel’s board on most matters.
President Trump lauded Intel CEO Lip-Bu Tan during the announcement, dubbing it as “a great deal for America“. This comes just weeks after he publicly called for Tan’s resignation. The move highlights the administration’s unprecedented willingness to take direct stakes in private companies. This forms part of its strategy to compete with China in the semiconductor industry. Intel, valued at approximately $108 billion, has been struggling to keep pace with rivals like Nvidia in the AI boom.
Source: NBC News