US President Donald Trump has taken a bold step in the semiconductor sector by signing an agreement with Intel Corporation to acquire a 10 per cent stake in the company, a move aimed at revitalizing the struggling chipmaker and bolstering domestic chip production.
The deal, finalized on Friday, grants the US government ownership of 433.3 million Intel shares, representing 9.9 per cent of the company’s fully diluted common stock. Intel confirmed that the $8.9 billion transaction will be funded through pending grants under the US Chips and Science Act, as well as the Secure Enclave program. Along with a prior $2.2 billion in support, total government backing for Intel now reaches $11.1 billion. Despite the scale of the investment, the US holds no board representation or governance rights, making it a passive shareholder.
US Secretary of Commerce, Howard Lutnick, announced the agreement via a post on X, emphasizing the administration’s commitment to advancing domestic technology and manufacturing leadership. Intel CEO Lip-Bu Tan expressed gratitude for the confidence placed in the company, stating, “We are grateful for the confidence the president and the administration have placed in Intel, and we look forward to working to advance US technology and manufacturing leadership.”
President Trump praised the agreement as a “great deal for America and Intel,” highlighting the critical importance of semiconductor manufacturing to the nation’s future. “Building leading-edge chips is fundamental to our country,” he said in a social media post, framing the move as part of a broader strategy to secure US technological sovereignty.
The partial ownership represents one of the most direct government interventions in a major US corporation outside of wartime or financial crises. The White House has repeatedly emphasized that semiconductor production is a matter of national security, pointing to recent supply shortages that disrupted industries globally. Intel remains one of the few American companies capable of producing chips at scale domestically, and the government hopes the investment will restore its competitiveness against Asian rivals.
The transaction also reflects a new approach to the US Chips Act, originally passed under the Biden administration. While the law was primarily designed to provide subsidies, the Trump administration is using it to ensure taxpayers receive a tangible return on large-scale investments. Commerce Secretary Lutnick noted that the goal was to secure measurable benefits for the US economy, rather than merely granting funds.
Industry reaction has been largely positive, with Intel CEO Lip-Bu Tan affirming the company’s commitment to expanding its US manufacturing footprint, including new factories in Arizona. Technology giants such as Microsoft, Dell, HP, and Amazon Web Services also voiced support, recognizing the strategic importance of a robust domestic chip supply chain.
However, analysts have cautioned that funding alone may not resolve Intel’s long-standing challenges. Bernstein analyst Stacy Rasgon told Bloomberg, “Besides funding, Intel needs more customers.” Without stronger demand, even a government-backed expansion could struggle to deliver the intended benefits.
The Intel deal is part of a broader strategy of state involvement under Trump’s economic policies. In recent months, the administration has pursued unconventional arrangements with companies such as Nvidia and AMD, as well as securing a “golden share” in Nippon Steel’s US operations, signaling a more hands-on approach to strategic industries.