US takes 10% stake in Intel under Trump tech push

The United States government has taken an unprecedented step in the technology sector, purchasing an $8.9 billion stake in Intel that gives Washington roughly 10% ownership of the struggling chipmaker. The agreement, announced jointly by Intel and President Donald Trump on Friday, marks a dramatic intervention aimed at boosting domestic semiconductor production.

Trump Hails “Great Deal”

In a celebratory post on Truth Social, Trump declared: “It is my Great Honor to report that the United States of America now fully owns and controls 10% of Intel, a Great American Company that has an even more incredible future.”

Trump said the arrangement was struck directly with Intel CEO Lip-Bu Tan. “I said, I think you should pay us 10% of your company,” Trump recounted of their Oval Office conversations. “And they said yes.”

The president framed the deal as a win for both sides: “The United States paid nothing for these shares, and the shares are now valued at approximately $11 billion. This is a great deal for America and, also, a great deal for Intel.”

Funding the Stake

Intel confirmed in a press release that the transaction was structured as a passive investment, with the U.S. acquiring 433.3 million shares at $20.47 apiece, or about 9.9% of the company. The government will not take board seats or exercise governance rights.

The equity purchase is funded through unallocated money from the Biden-era CHIPS and Science Act, along with $3.2 billion earmarked under the Department of Defense’s Secure Enclave program. Treasury Secretary Scott Bessent said the decision was intended to stabilize Intel and “anchor advanced chip production here in the U.S.”

Domestic Manufacturing and Security Concerns

Semiconductors have become a focal point of U.S. economic and national security policy, given their central role in products ranging from consumer electronics to military hardware. Currently, most advanced chips are manufactured abroad, primarily in Taiwan, raising concerns about supply chain vulnerabilities.

Trump has made increasing U.S. semiconductor production a priority of his second term. He has touted investments by Nvidia and other companies as victories and threatened 100% tariffs on imported semiconductors, exempting firms that commit to building factories in the United States.

Commerce Secretary Howard Lutnick praised the Intel deal as “historic,” writing on X that it “strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge.”

Intel’s Struggles and Turnaround Efforts

Once the dominant name in microprocessors, Intel has stumbled in recent years, losing market share to rivals such as Taiwan Semiconductor Manufacturing Company (TSMC). CEO Lip-Bu Tan, who took the helm in March, has been overseeing major restructuring efforts, including plans to cut 15% of Intel’s global workforce.

The company has also faced delays in constructing a major manufacturing site in Ohio, a project the White House considers strategically important. Japanese conglomerate SoftBank announced earlier this week it would inject $2 billion into Intel, further signaling international confidence in the company’s revival.

Despite these efforts, analysts remain skeptical whether government ownership alone can address Intel’s technological lag. Its chips remain less advanced than those of key competitors, raising questions about long-term competitiveness.

Wider Strategy of State Stakes

This move marks a striking new approach by the Trump administration, which has already pushed through unusual arrangements with other semiconductor firms. Earlier this month, Nvidia and AMD agreed to remit 15% of their China sales to the U.S. government in exchange for export licenses, after Washington raised national security objections to their sales in the region.

White House officials have signaled that similar equity stakes could be pursued in other industries deemed critical to U.S. interests. Trump himself suggested he is eager to replicate the Intel deal: “I hope to strike similar deals with other companies in the future.”

Intel’s stock responded positively to the announcement, rising 7% on Friday.

What Comes Next

While the government’s investment gives Intel breathing room, it is not clear how far it will go toward solving the company’s core problems. The administration has said it does not intend to interfere with Intel’s product strategy or force other U.S. tech companies to purchase its chips.

Still, the stake underscores the extent to which semiconductors are now viewed not just as an economic engine, but as a pillar of U.S. national security. For Trump, the deal also offers a political talking point — evidence, he argues, of his administration’s ability to leverage industry relationships for American advantage.