WASHINGTON, August 23 — The U.S. government has taken a 10% stake in Intel after converting $8.9 billion in grants under the Biden-era CHIPS and Science Act and Secure Enclave program into equity, a move President Donald Trump hailed as a “great deal for America.”
Commerce Secretary Howard Lutnick confirmed the deal, which gives Washington 433.3 million shares at a discounted price of $20.47 each, though the government will not have board seats or direct governance rights. Trump said the stake, now worth around $11 billion, strengthens U.S. leadership in semiconductors and ensures future technologies remain American-made.
The agreement comes just days after Japan’s SoftBank pledged a separate $2 billion investment in Intel, as the struggling chipmaker seeks to regain ground against Taiwan Semiconductor Manufacturing Company and Samsung. Intel CEO Lip-Bu Tan said the deal underscores the company’s commitment to U.S. manufacturing.
Even as it delays construction of its $100 billion Ohio factory complex until 2030. Critics, however, warned the move risks politicizing corporate governance. Tech analyst Rob Enderle described it as “a slippery slope toward nationalizing private business,” while others argued it could hurt Intel’s long-term competitiveness.
Still, Trump has signaled more such interventions may follow, marking a sharp shift in U.S. industrial policy as Washington accelerates efforts to dominate the global semiconductor race.
