President Donald Trump said Friday that under an $8.9 billion deal with the struggling chipmaker, the United States would acquire around 10%, thereby setting a remarkable involvement in the corporate sector of the nation.
The agreement calls for the government to acquire 433.3 million shares for $20.47 apiece, around $4 lower than Intel’s Friday closing price of $24.80. Unpaid CHIPS Act grants of $5.7 billion and $3.2 billion intended for Intel’s Secure Enclave initiative will help to fund it.
Commerce Secretary Howard Lutnick confirmed the decision on X: “The United States of America owns 10% of Intel now.”
In after-hours trading, Intel shares lost 1.2%.
The development follows Trump’s recent arguments with CEO LipBu Tan regarding his contacts to Chinese businesses. Trump stated Friday that Tan’s job had been at risk until the negotiations produced the government equity stake: “He walked in wanting to keep his job, and he ended up giving us $10bn for the United States.”
Analysts said the decision might provide Intel some breathing space to resurrect its loss-making foundry operation, which has had difficulties drawing clients amid delays and a poor product roadmap. The company reported its first annual loss since 1986, $18.8 billion in 2024.
The federal stake is around the $10 billion in CHIPS Act subsidies Intel is slated to get as part of the Biden initiative aimed to increase local chip manufacturing. Signaling a departure from previous subsidy patterns, Trump has linked governmental backing to equity or revenue-sharing systems.
The agreement also follows a $2 billion capital infusion from Japan’s SoftBank, therefore highlighting attempts to steady the once-dominant US chipmaker.
Charged with leading Intel’s turnaround, Tan ascended to CEO in March. Later Friday, he is scheduled to meet with Trump at the White House once again.
Including planned agreements with Nvidia and MP Materials, the president has adopted an ambitious industrial strategy in semiconductors and crucial minerals. Critics point out that such state holdings could skew markets and increase political risks for businesses.
Earlier this week, Senator Bernie Sanders applauded the agreement, pointing out he and Senator Elizabeth Warren had previously pressed for equity or debt warrants in return for federal funding under the 2022 CHIPS and Science Act.
