Trump administration takes 10% stake in Intel in historic deal

The U.S. government is taking a nearly 10% stake in Intel after making an $8.9 billion investment in the struggling chipmaker. The move is part of President Donald Trump’s broader push to expand American control over critical technology industries.

The deal, announced Friday by both Trump and Intel, gives the federal government 433.3 million shares of Intel common stock at $20.47 per share - a stake valued at roughly $11 billion. The purchase is funded through previously awarded but ungranted CHIPS Act subsidies and Defense Department funds earmarked for Intel’s “Secure Enclave” program.

“It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future,” Trump wrote on Truth Social.

Speaking earlier in the Oval Office, Trump said Intel CEO Lip-Bu Tan agreed to the deal following direct talks. “I said, I think you should pay us 10% of your company. And they said yes,” Trump said. “This is a great deal for America and, also, a great deal for Intel.”

Intel confirmed the government’s stake in a press release, emphasizing that the ownership would be passive, with no board representation or governance rights. “As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American-made,” Tan said.

The agreement comes amid mounting pressure on U.S. chipmakers to expand domestic production and reduce reliance on Asian supply chains. Trump has repeatedly signaled his willingness to intervene directly in key industries, framing the Intel deal as a model for future government investments. Two people familiar with White House discussions told CNN the administration has explored similar arrangements with other strategic companies.

The move marks a dramatic reversal from just two weeks ago, when Trump publicly demanded Tan’s resignation over alleged ties to China. It also follows a turbulent week of speculation: Bloomberg first reported government talks with Intel, sparking a surge in Intel’s stock price, only for the White House to deny the report.

Intel has been under strain in recent years as it struggles to catch up with rivals like Nvidia in the booming AI chip sector while navigating costly manufacturing delays. Analysts said the government’s equity stake could provide a crucial backstop.

Trump, meanwhile, has tied semiconductor policy to his broader trade agenda. Earlier this month, he pledged to impose 100% tariffs on imported chips, except for companies committed to manufacturing in the U.S. He has also touted close ties with Nvidia CEO Jensen Huang as a political and economic win.

What remains unclear is how the U.S. intends to manage its stake in Intel, and whether this new model of government investment will be extended across the tech sector. For now, the administration is billing it as a landmark deal that secures America’s role in the global semiconductor race.