President Trump has announced that the U.S. government will acquire roughly 10% of Intel, making it one of the company’s largest shareholders. This stake is structured as a conversion of previously allocated but unpaid federal grants—not a fresh cash outlay—totaling around $8.9 billion.
The breakdown is as follows: $5.7 billion comes from the CHIPS and Science Act grants still pending disbursement, while another $3.2 billion is from the Department of Defense’s Secure Enclave program. Under the deal, the government will purchase approximately 433.3 million shares at about $20.47 each—trading below the market price. The resulting equity amounts to about 9.9% of Intel, with no board seats or governance control included.
Intel CEO Lip-Bu Tan, who had recently weathered calls for his resignation over past ties to Chinese firms, met with the president and secured this strategic alliance shortly thereafter. The move has helped stabilize Intel amid its broader restructuring efforts and aim to regain its footing against rivals like Nvidia and AMD.
Share prices reacted positively—Intel saw a notable rally following the announcement. The agreement includes an option for the government to gain an additional 5% if the company’s foundry ownership falls below 51%, further safeguarding U.S. semiconductor manufacturing infrastructure.
Critics caution that this degree of government ownership risks distorting market dynamics and inviting political influence into corporate strategy. Supporters, however, frame the deal as a bold step toward revitalizing America’s tech manufacturing and reducing reliance on overseas suppliers.
