WASHINGTON—Chipmaker Intel has agreed to give the US government a 10-percent stake in its business, the company and President Donald Trump announced Friday.
The deal came after Trump’s administration said Intel should give Washington an equity stake in exchange for large grants committed when Joe Biden was president.
Under the agreement, the US government will receive 433.3 million shares of common stock, representing a 9.9 percent stake in the company, Intel said in a statement.
This amounts to an $8.9-billion investment, funded partially by $5.7 billion in grants awarded but not yet paid under the CHIPS and Science Act — a major law passed during Biden’s term that Trump has criticized.
The other $3.2 billion comes from an award to the company as part of the Secure Enclave program, Intel said.
The $8.9 billion investment would be in addition to $2.2 billion in CHIPS grants Intel has already received, taking the full amount to $11.1 billion, the company said.
“The United States of America now fully owns and controls 10 percent of Intel,” Trump posted on Truth Social.
He claimed that the country “paid nothing for these shares” after negotiations with Intel CEO Lip-Bu Tan. AFP
Intel noted in its statement: “The government’s investment in Intel will be a passive ownership, with no board representation or other governance or information rights.”
Referring to a meeting with Intel last week, Trump told reporters Friday: “I said, I think you should pay us 10 percent of your company.”
“I said, I think it would be good having the United States as your partner… they’ve agreed to do it, and I think it’s a great deal for them.”
Commerce Secretary Howard Lutnick said Friday on X: “This historic agreement strengthens US leadership in semiconductors.”
