Trump Secures 10% U.S. Stake in Intel in Landmark Deal

In a major development for the American semiconductor industry, chipmaker Intel has agreed to give the U.S. government a 10-percent stake in its business, President Donald Trump and the company confirmed Friday.

The deal follows a push by the Trump administration to convert past grant commitments—originating under President Joe Biden—into equity. Trump’s team argued that the government should hold a stake in return for substantial taxpayer-funded support.

According to Intel’s statement, the U.S. government will receive 433.3 million shares of common stock, representing a 9.9% ownership in the company. The total value of the investment is $8.9 billion, funded in part by $5.7 billion in unpaid grants from the CHIPS and Science Act, a cornerstone of Biden-era industrial policy that Trump has frequently criticized. The remaining $3.2 billion comes from a separate award under the Secure Enclave program.

This new stake comes on top of $2.2 billion in CHIPS grants Intel has already received, bringing the total U.S. investment in the company to $11.1 billion, Intel said.

“The United States of America now fully owns and controls 10% of INTEL,” Trump wrote on Truth Social, claiming the country “paid nothing for these shares” following direct negotiations with Intel CEO Lip-Bu Tan.

Intel clarified that the government’s role would be strictly passive, with “no board representation or other governance or information rights.”

At a press briefing Friday, Trump described how the agreement came about:

“I said, I think you should pay us 10 percent of your company. I think it would be good having the United States as your partner… they’ve agreed to do it, and I think it’s a great deal for them.”

Commerce Secretary Howard Lutnick hailed the agreement as a milestone:

“This historic agreement strengthens U.S. leadership in semiconductors,” he said in a post on X.

However, not everyone sees the deal as a win.

“This is a slippery slope,” said tech analyst Rob Enderle, warning it could mark the beginning of nationalizing private business.

Scott Lincicome of the Cato Institute was also critical, calling the move “a terrible decision” that risks compromising Intel’s independence:

“It’s bad for Intel’s long-term viability, as politics, not commercial considerations, increasingly drive its decisions. Foreign governments might also target it.”

Despite concerns, Intel CEO Tan reiterated the company’s commitment to U.S. innovation:

“Intel is deeply committed to ensuring the world’s most advanced technologies are American made.”

Intel says it is investing over $100 billion to expand its U.S. operations, as it seeks to catch up with global semiconductor leaders like TSMC and Samsung.

The deal comes amid broader tensions. Earlier this month, Trump called for Tan’s resignation after a GOP senator raised national security concerns over his ties to firms in China. Meanwhile, Japanese tech giant SoftBank Group recently announced a $2 billion investment in Intel, further signaling the company’s central role in global chipmaking.