The United States government has acquired a 10% equity stake in chipmaker Intel, an agreement that converts previously allocated federal grants into a significant ownership position. The deal, announced by President Donald Trump, makes the U.S. government one of the company’s largest shareholders and is considered one of the most direct federal interventions in a private company in years.
According to filings, the U.S. government is acquiring 433.3 million shares of Intel at $20.47 apiece, a price below the market’s closing price of $24.80 on Friday. The total value of the $8.9 billion equity purchase is being funded by $5.7 billion from the CHIPS and Science Act and an additional $3.2 billion from the Secure Enclave program. While the government will hold a substantial stake, the shares are passive, carrying no voting rights or board representation, a point emphasized by Intel. The move follows a dramatic shift in the administration’s stance toward Intel’s CEO, Lip-Bu Tan, whom Trump had previously called to resign. After a meeting between the two, the tone changed, leading to the finalization of the deal.
The agreement has drawn both praise and criticism. Supporters, including Commerce Secretary Howard Lutnick, hail the arrangement as “historic,” arguing that it turns what were considered “giveaways” into a return for the American people. In contrast, critics have voiced concerns, calling the move a “slippery slope” toward nationalization and warning of potential government meddling in corporate strategy. The intervention comes as Intel has faced significant financial struggles, including $22 billion in losses since 2023 and falling behind competitors like Nvidia in the AI chip market. The long-term impact of the government’s stake on Intel’s turnaround efforts and the broader technology sector remains to be seen.
