US Government Bags $8.9 Billion Stake In Intel Amid CHIPS Act Shift

The US government is set to take a nearly 10 percent stake in chipmaker Intel, amounting to an $8.9 billion investment, President Donald Trump confirmed during a Friday press conference.

While an official announcement has yet to be released, the move marks a dramatic shift in how the government deploys CHIPS Act funds, which were originally intended as grants.

News first surfaced earlier this month that Intel’s expected CHIPS Act funding would instead be converted into equity. According to Trump, the deal followed a high-stakes meeting with Intel CEO Lip-Bu Tan, whom the President had previously urged to resign.

“He walked in wanting to keep his job and he ended up giving us 10 billion dollars for the United States. So we picked up 10 billion,” Trump told reporters.

Intel Confirms Investment Structure and US Government Stake

Intel later confirmed the details in a press release, stating the government will purchase $8.9 billion in Intel common stock at $20.47 per share, giving it a 9.9 percent stake.

The equity is funded by $5.7 billion from CHIPS Act allocations and $3.2 billion from the Secure Enclave program. Intel has already received $2.2 billion in CHIPS grants, bringing the government’s total financial involvement with the company to $11.1 billion.

While Commerce Secretary Howard Lutnick initially suggested the government’s shares would be non-voting, Intel clarified that common stock includes voting rights. However, the government agreed its role will remain passive, with no board representation, and will vote in alignment with Intel’s board on shareholder matters.

Intel’s Struggles Continue as US Expands Chip Strategy

The decision comes as Intel faces mounting pressure to stabilize its business. Since taking over as CEO in 2024, Lip-Bu Tan has announced a 20 percent workforce reduction while fighting to secure federal backing.

Intel’s next-generation Panther Lake chips have reportedly struggled in production, raising concerns about the company’s future despite fresh investment.

The Trump administration has stressed that this equity deal is unique to Intel and not a precedent for other CHIPS Act recipients. Still, other semiconductor giants are striking unprecedented arrangements with Washington.

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NVIDIA and AMD reportedly agreed to share 15 percent of profits in exchange for continued permission to export products to China.

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