President Donald Trump has finalized a landmark deal that gives the US government a 9.9% equity stake in Intel Corp., marking an extraordinary intervention in corporate America to strengthen domestic semiconductor manufacturing.
Under the agreement, the government will receive 433.3 million common shares, valued at $8.9 billion, funded through grants under the Chips and Science Act and the Secure Enclave program. Including the $2.2 billion previously disbursed from the Chips Act, Intel’s total government-backed support now stands at $11.1 billion.
Intel confirmed that the US will be a passive shareholder with no board representation, voting rights, or access to governance information.
“We are grateful for the confidence the president and the administration have placed in Intel, and we look forward to advancing US technology and manufacturing leadership,”
said Intel CEO Lip-Bu Tan.
Intel’s stock climbed 5.5% to $24.80 in New York trading on Friday, before easing 1% in after-hours trade.
Trump Calls It a “Great Deal”
In a social media post, Trump described the agreement as a “great Deal for America and for Intel.” He argued that building advanced semiconductor capabilities is critical to the nation’s future.
A White House official stressed that the decision reflects a national security priority, citing the recent supply chain disruptions caused by global chip shortages. Intel remains one of the few American companies capable of producing advanced semiconductors at scale on US soil.
A Risky but Bold Move
The move represents a rare break from free-market principles, raising concerns about government overreach and potential taxpayer risks. Critics argue that the intervention could distort capital markets, though proponents see it as essential for rebuilding US chip dominance.
Trump’s approach marks a shift in how Chips Act funding is deployed. While he previously criticized the legislation signed by former President Joe Biden, Trump now insists taxpayer funds must deliver a direct return. Intel, already the largest beneficiary of the Act, becomes the first major test case.
As part of the deal, Washington also receives a five-year warrant to acquire another 5% stake at $20 per share, exercisable only if Intel’s ownership of its manufacturing arm falls below 51%.
Background and Broader Strategy
The deal follows a tense exchange earlier this month when Trump publicly questioned CEO Lip-Bu Tan’s ties to China. Their subsequent meeting laid the groundwork for the partnership. Commerce Secretary Howard Lutnick played a key role in finalizing terms, signaling a broader policy shift toward tying federal subsidies to equity stakes.
While the White House hinted the Intel arrangement could become a template for future deals, officials clarified that companies like TSMC and Micron, which are already expanding US operations, would not be compelled to part with equity.
Intel said the funding will support its $100 billion US expansion drive, including a new factory in Arizona, though its planned Ohio facility remains delayed. The company also emphasized ongoing discussions with major clients like Microsoft, Dell, HP, and Amazon AWS, which pledged support to strengthen the US chip ecosystem.
Industry experts, however, warned that money alone may not fix Intel’s structural challenges.
“Besides funding, Intel needs customers,” noted Bernstein analyst Stacy Rasgon, cautioning that a capacity buildout without sufficient demand could hurt shareholders, including the US government.
Still, some see Trump’s involvement as potentially beneficial.
“Trump kind of becomes your salesman,” said Dan Morgan, a senior portfolio manager at Synovus Trust.
Part of a Bigger Pattern
The Intel deal reflects Trump’s broader strategy of economic statecraft, where the government takes a more direct role in critical industries. Earlier this month, he announced controversial revenue-sharing deals with Nvidia and AMD on AI chip sales to China, and previously secured a “golden share” in US Steel through Nippon Steel’s acquisition. The Defense Department also recently took a $400 million stake in rare-earths producer MP Materials.
For Intel, the nearly $9 billion infusion provides immediate financial relief and opens doors to new partnerships. For the US, the deal underscores Trump’s determination to restore domestic manufacturing leadership in semiconductors—albeit through a bold, unprecedented path.
