Trump Secures $10 Billion Intel Stake in Bid to Boost US Semiconductor Manufacturing

In a significant announcement made on Friday, President Donald Trump revealed an agreement with Intel CEO Lip-Bu Tan, which will see the tech giant invest $10 billion in the United States. This deal comes as part of an initiative to bolster semiconductor manufacturing domestically.

During a discussion in the Oval Office, Trump shared that he had proposed a 10% stake in Intel by the company, to which Tan agreed. The president considered this move a mutually beneficial one, stating, “I think it’s a great deal for them. And I think it’s a great deal for us.”

Tan’s appointment as Intel’s CEO took place in March, following the company’s struggles to keep pace with technological advancements. This agreement is intended to help the company regain its footing and strengthen its position in the US market.

In response to the announcement, Intel’s stock (INTC) saw a 7% rise on Friday. However, the company declined to comment following the president’s statement.

Reports emerged last week that discussions were underway regarding the White House considering an equity stake in Intel. These discussions were confirmed earlier this week by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, who also indicated that any deal would likely involve converting grant funding from the CHIPS Act into an equity stake.

Tan’s meeting with Trump at the White House last week was followed by reports suggesting the potential investment in Intel. Japan’s SoftBank announced on Monday a $2 billion investment into Intel, further supporting its efforts to reestablish itself as a major player in the tech industry.

Increasing domestic production of semiconductors has been identified as a national security priority due to their role in various products, from consumer electronics to military equipment and medical machinery. Currently, most of the world’s chips are produced in Taiwan, but significant investments have been made by major tech companies in increasing chipmaking capacity in the United States.

However, Intel has faced challenges in attracting customers due to its less advanced chip technology compared to competitors like TSMC. It remains uncertain how Trump’s investment will directly address these core issues within the company.

Despite this, both Bessent and Lutnick have expressed their intention to help Intel move forward with plans for a new manufacturing facility in Ohio, which has faced delays due to financial difficulties. The White House does not plan to pressure other US tech companies to use Intel’s chips or push for increased sales. Instead, the focus is on stabilizing the company and promoting chip production within the US.