U.S. government to acquire $8.9B (≈9.9%) stake in Intel
President Donald Trump and Intel reached an agreement for the U.S. government to invest $8.9 billion to acquire approximately a 9.9% stake in Intel common stock at $20.47 per share. The investment is described as passive with no board representation; Intel says the government agreed to vote with the company’s board on shareholder matters with limited exceptions.
Key facts
- Investment: $8.9 billion (≈9.9% of Intel common stock)
- Price: $20.47 per share
- Funding sources: $5.7B from previously earmarked CHIPS Act funds and $3.2B from the Secure Enclave program
- Prior CHIPS grants: Intel had already received $2.2B in CHIPS grants, bringing total government support to $11.1B
- Governance: Common stock (voting rights); Intel calls the investment passive with no board seat and an agreement to generally vote with the board
Context
The deal follows a reported meeting between Intel CEO Lip-Bu Tan and President Trump after calls for Tan to resign. Tan became CEO in 2024 after Pat Gelsinger’s sudden retirement and has since announced large cost-cutting measures, including a 20% workforce reduction. Intel is also reportedly struggling to scale its next-gen Panther Lake chips, making federal support strategically important.
Administration stance
The Trump administration said it will not seek similar equity deals with other CHIPS Act recipients. However, other unprecedented arrangements have been reported, such as deals around export permissions for NVIDIA and AMD tied to profit-sharing arrangements.
Sources & further reading
- Intel press release: Intel: “Intel and Trump administration reach historic agreement”
- Reuters coverage: U.S. government to acquire $8.9 billion (9.9%) stake in Intel common stock
Updated: August 22, 2025