U.S. Government Takes 10% Stake in Intel as Trump Expands Role in Private Sector

The U.S. government has acquired a 10% stake in Intel, marking a significant shift in Washington’s approach to the private sector under President Donald Trump. Commerce Secretary Howard Lutnick confirmed the deal on Friday, saying the administration’s investment reflects the strategic importance of domestic chip production.

Intel said the government purchased 433.3 million shares at $20.47 each, totaling $8.9 billion. The deal gives the government a 10% holding in the company, with much of the funding sourced from previously awarded CHIPS Act grants and additional programs to develop secure chips. Intel shares rose about 6% in regular trading before closing flat after hours.

President Trump praised the agreement, calling it “a great deal for America and a great deal for Intel.” He said the U.S. effectively paid nothing for the shares, now valued at around $11 billion. The administration also secured warrants to buy an additional 5% if Intel reduces its control of its foundry business.

Despite the equity stake, the government will not have board representation or voting rights. Intel CEO Lip-Bu Tan said the move underscores the company’s commitment to ensuring that cutting-edge semiconductor technology remains American-made.

The development comes just days after SoftBank announced a $2 billion investment in Intel, giving the Japanese firm about a 2% stake. It also highlights the government’s increasing role in shaping industrial policy, with Lutnick telling CNBC that the U.S. should receive equity stakes in return for CHIPS Act funds.

Intel is currently building large-scale factories in Ohio, part of its “Silicon Heartland” project aimed at boosting advanced chip production. However, construction has slowed amid tighter financial controls, with operations now scheduled to begin in 2030. The company faces ongoing competition from Taiwan Semiconductor Manufacturing Company, which continues to dominate global chipmaking for major technology firms.

Trump is expected to meet with Tan at the White House following the announcement, further cementing the administration’s hands-on approach in guiding the future of America’s semiconductor industry.