Chipmaker, Intel has agreed to give the United States government a 10 percent stake in its business, according to a joint announcement by the company and President Donald Trump.
The deal follows Trump’s push for Intel to provide Washington with equity in exchange for major grants initially approved during Joe Biden’s presidency.
Under the agreement, the US government will receive 433.3 million shares of common stock, representing a 9.9 percent stake, valued at approximately $8.9 billion. The investment is partly funded by $5.7 billion in unpaid grants from the CHIPS and Science Act, alongside $3.2 billion from Intel’s Secure Enclave program.
Intel said this amount is in addition to $2.2 billion in CHIPS grants it has already received, bringing the total to $11.1 billion.
“The United States of America now fully owns and controls 10% of Intel,” Trump posted on Truth Social, claiming the country “paid nothing for these shares” following negotiations with Intel CEO Lip-Bu Tan.
In a statement, Intel clarified that the government’s investment will be a passive ownership with no board representation or governance rights.
Commerce Secretary Howard Lutnick described the agreement as a “historic step” that strengthens US leadership in semiconductors.
However, some analysts warned of potential risks. Independent tech analyst Rob Enderle called it “a slippery slope” toward nationalizing private businesses, while Scott Lincicome of the Cato Institute argued it could harm Intel’s long-term viability by injecting political influence into corporate decisions.
Intel CEO Tan maintained that the company remains committed to ensuring “the world’s most advanced technologies are American made,” noting plans to invest over $100 billion to expand its US operations.