US Government Takes 10 Percent Stake In Intel

The US government has officially taken a 10 percent stake in Intel as part of an $8.9 billion investment deal. Most of this funding comes from grants already promised under the CHIPS Act, highlighting how federal support is shaping the future of America’s semiconductor industry. This move not only secures Intel’s financial position but also strengthens US efforts to reduce reliance on foreign chip production.

Why The US Government Invested In Intel

The government’s 10 percent stake in Intel is tied directly to the CHIPS Act, a program designed to boost domestic semiconductor manufacturing. Intel will receive $5.7 billion in remaining grant payments and $3.2 billion under the Secure Enclave program. By converting existing commitments into equity, the government ensures Intel’s long-term stability while protecting taxpayer money. This strategy reflects a broader push to position the US as a leader in advanced chip production.

Trump’s Role In The Intel Deal

President Donald Trump announced the investment during a press briefing, framing the deal as a way to secure both Intel’s future and national interests. Trump revealed that Intel CEO Lip-Bu Tan agreed to the arrangement, which includes passive ownership for the government without board representation or governance rights. The administration views this as a “win-win” approach—giving Intel needed support while ensuring the US benefits directly from the company’s success.

What This Means For The Semiconductor Industry

The US government’s stake in Intel signals a major shift in how Washington manages critical technology industries. With SoftBank also investing $2 billion into Intel, the company now has both domestic and global backing. This partnership highlights how semiconductors have become central to economic security and international competition. As the Biden-era CHIPS Act funding continues, other chipmakers may also see tighter government involvement, reshaping the balance of power in the global tech landscape.