Key points
- U.S. President Trump announced a 10% equity stake in Intel, valued at approximately $10 billion.
- This follows a meeting between Trump and Intel CEO Lip-Bu Tan, spurred by Trump’s earlier demand for Tan’s resignation.
- The investment is roughly equivalent to Intel’s CHIPS Act grant for U.S. chip plant construction.
- The stake is reportedly non-voting, limiting government influence on Intel’s operations.
President Donald Trump announced Friday that the U.S. government will acquire a 10% stake in Intel, marking another significant intervention by the White House in the American corporate landscape. The deal, expected to be officially announced later in the day, follows a meeting between Trump and Intel CEO Lip-Bu Tan earlier this month.
Initially, Trump had demanded Tan’s resignation due to concerns over the CEO’s ties to Chinese firms. However, the meeting concluded with a $10 billion investment from Intel into U.S. initiatives. Trump himself stated, “He walked in wanting to keep his job, and he ended up giving us $10 billion for the United States.”
This investment, roughly equivalent to the amount Intel is set to receive in CHIPS Act grants, represents a significant shift in the relationship between the government and private corporations.
The equity stake is part of a broader strategy by the Trump administration to secure control over critical industries. This includes similar deals with Nvidia, involving a percentage of sales from H20 chips sold to China, and an arrangement with a rare-earth mining company to bolster domestic production.
The government’s active participation in these deals has drawn criticism from some quarters, raising concerns about the potential for increased corporate risk and undue governmental influence. However, officials have emphasized that the Intel stake will be non-voting, meaning the government will not have a say in the company’s day-to-day operations.
Commerce Secretary Howard Lutnick confirmed this week that the government’s involvement is intended to bolster American industries, not dictate their management.
Intel’s stock price saw a significant rise of more than 6% following the announcement. The company itself declined to comment on the deal. While the federal backing might provide Intel with needed financial leeway to revitalize its struggling foundry business, analysts note persistent challenges for the chipmaker, including a weak product roadmap and difficulties in attracting clients.
This unusual intervention reflects President Trump’s assertive approach to national security, particularly concerning the semiconductor industry and the sourcing of critical minerals.
