The United States government has acquired a 10% stake in Intel Corporation, announced by President Donald Trump on August 22, 2025, as part of efforts to bolster domestic semiconductor production and address national security concerns. This unprecedented move involves converting government grants into equity and is part of a broader strategy of government intervention in key industries.
President Donald Trump, alongside Commerce Secretary Howard Lutnick, revealed the agreement where the US government takes a 10% non-voting equity interest in Intel, valued at approximately $10 billion. This deal follows a meeting between Trump and Intel CEO Lip-Bu Tan, who had faced pressure to resign over his investments in Chinese tech firms, highlighting the administration’s focus on reducing foreign influence in critical sectors.
The announcement was made on Friday, August 22, 2025, in the United States, with Trump emphasizing the stake as a means to support Intel’s turnaround and ensure America’s technological edge. The timing aligns with ongoing concerns about supply chain dependencies and competition with China in areas like artificial intelligence and chip manufacturing.
The primary motivation behind this investment is to lessen US reliance on foreign semiconductors, particularly from China, and to revitalize Intel’s struggling foundry business. Trump’s administration views this as essential for national security and maintaining leadership in emerging technologies, building on previous initiatives like the CHIPS and Science Act.
The stake is financed through the conversion of existing government grants, including $5.7 billion from the CHIPS Act and $3.2 billion from other programs, effectively turning taxpayer-funded support into equity without additional costs. The structure includes a non-voting ownership, meaning no board seat or direct control, but with provisions for limited veto rights in specific scenarios, as detailed in some reports.
This intervention has sparked criticism from experts who warn of increased corporate risk and potential government overreach in private enterprises. However, it could provide Intel with crucial capital to address its financial losses, which totaled $18.8 billion in 2024, and support expansion plans, though underlying challenges like technological lag behind competitors such as TSMC remain.
Looking ahead, Intel must focus on improving its product roadmap, attracting customers to new manufacturing facilities, and catching up technologically. The US government may extend similar equity stakes to other companies, as seen with deals involving Nvidia and AMD, indicating a continued trend of public-private partnerships in strategic sectors under Trump’s policies.