Trump Administration Acquires 10% Stake in Intel Worth $11 Billion as Part of Push for Domestic Chipmaking Leadership
The United States government has invested $8.9 billion in Intel Corporation’s common stock, securing approximately a 10% stake in the tech giant. This strategic move was announced jointly by both parties on Friday.
In a social media post, the President expressed his excitement, stating, “I am thrilled to announce that the United States now holds a 10% stake in Intel, a testament to its promising future as a leading American company.”
The announcement followed discussions between the President and Intel’s CEO, during which the CEO agreed to this significant investment deal. The President shared his intentions to pursue similar agreements with other companies in the future.
“I proposed a 10% stake in our company, and they accepted,” the President revealed regarding his conversations with Intel’s CEO. He further emphasized that the deal benefits both parties.
The agreement is part of an ongoing effort to bolster semiconductor manufacturing within the US and establish the country as a global leader in chipmaking, a priority for the current administration.
In his bid to promote domestic production of semiconductors, the President has highlighted his close relationship with the CEO of Nvidia and the latter’s investments in the US. He recently announced plans to impose 100% tariffs on semiconductors imported into the country, except for those companies committed to manufacturing products domestically.
Two weeks ago, the President called for the resignation of Intel’s CEO following allegations regarding his ties with China. However, it remains unclear if the government intends to have strategic involvement in the company’s decision-making. The deal grants the US a passive ownership stake in Intel without any board representation or additional governance rights.
The remaining $5.7 billion allocated from the CHIPS and Science Act will fund the equity, along with $3.2 billion promised by the Department of Defense as part of the Secure Enclave program. The government is purchasing 433.3 million shares at a price of $20.47 per share, equating to a 9.9% stake in the company.
“As the only semiconductor company that conducts leading-edge logic research and manufacturing in the US, Intel is dedicated to ensuring advanced technologies are American-made,” Intel’s CEO said in a press release.
The President has expressed his intention to pursue more such deals, with discussions ongoing regarding potential investments in other critical industries within the US.
Following the announcement, Intel’s stock price increased by 7%. This strategic move is expected to strengthen American leadership in semiconductors, contributing to economic growth and securing America’s technological edge.