In a move that marks one of the most significant intersections of government and private enterprise in decades, the US government has officially taken a 9.9% stake in Intel, investing $8.9 billion into the struggling chipmaker.
The investment, announced Friday, underscores the White House’s commitment to reviving domestic semiconductor production and reducing America’s reliance on foreign chipmakers like Taiwan Semiconductor Manufacturing Company (TSMC).
The Details of the Deal
Under the terms of the agreement, the government will purchase 433.3 million Intel shares at $20.47 per share, giving taxpayers a discounted entry point compared to current market prices.
Combined with the $2.2 billion in CHIPS Act grants Intel has already received, the total government support now reaches $11.1 billion.
Importantly, the government’s ownership will remain passive:
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No seats on Intel’s Board of Directors.
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No governance or special information rights.
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Voting aligned with the company’s Board, except for limited exceptions.
Intel stressed that the partnership allows both taxpayers and existing shareholders to benefit from the company’s turnaround while giving Intel breathing room to expand US-based manufacturing.
Trump and Intel’s CEO Strike a Deal
President Donald Trump personally discussed the agreement with Intel CEO Lip-Bu Tan, whose leadership had come under fire due to his reported ties to Chinese companies.
Trump, who initially called for Tan’s resignation, shifted course after a White House meeting earlier this month. On Friday, he praised Tan’s “amazing story” and revealed how the deal came about.
“I said, you know what, I think the United States should be given 10% of Intel. And he said, I would consider that,” Trump told reporters. “He walked in wanting to keep his job, and he wound up giving us $10 billion to the United States.”
The remarks caused Intel’s stock to jump nearly 6% before closing Friday, though shares slipped about 1% in after-hours trading following the official confirmation.
A Struggling Giant With Strategic Importance
Intel, once the undisputed leader of the global semiconductor industry, has seen its market share erode as TSMC and Samsung surged ahead in advanced chipmaking. The US government’s decision to take a direct equity stake highlights how vital Intel is to Washington’s industrial and national security strategy.
Semiconductors are the backbone of modern technology — powering smartphones, cars, AI systems, and weapons platforms. The COVID-19 supply chain crisis exposed America’s dangerous reliance on foreign manufacturing. Intel remains one of the few companies that both designs and manufactures chips on US soil, making it indispensable.
Intel CEO Tan framed the partnership as central to America’s technological sovereignty:
“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the US, Intel is deeply committed to ensuring the world’s most advanced technologies are American-made.”
Not the First Time Washington Took a Stake
The Intel deal is not an isolated case. It reflects a broader strategy of direct government intervention in industries considered critical to US security. Recent examples include:
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A “golden share” in United States Steel Corp.
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A $400 million Pentagon equity stake in MP Materials Corp, a domestic rare earth producer.
Together, these moves signal a new era of industrial policy where Washington isn’t just funding industries through subsidies, but taking an ownership role.
What It Means for the Future
The investment raises key questions:
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Will this model extend to other US chipmakers, like AMD or GlobalFoundries?
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Can government equity ownership accelerate Intel’s turnaround, or will it raise concerns about political influence in the private sector?
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How will foreign competitors, particularly China, respond to the US tying national strategy so closely to one company?
For Trump, the move fits his broader narrative of deal-making and industrial revival. For Intel, it represents both a lifeline and a bet: that with government backing, it can reestablish itself as a global leader in chipmaking.
For taxpayers, it is a rare chance to own a slice of America’s technological future.
