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The United States government will take an approximately 9.9% stake in Intel. The company announced the news today, shortly after President Trump told reporters about the news.
Intel's press release states that the government "will make an $8.9 billion investment in Intel common stock, reflecting the confidence the Administration has in Intel to advance key national priorities and the critically important role the company plays in expanding the domestic semiconductor industry."
That money will come from $5.7 billion in grants that have yet to be paid out to Intel under the CHIPS and Science Act alongside $3.2 billion for the Secure Enclave program, for which the company is making chips for the U.S. Department of Defense. Intel has already received $2.2 billion of its CHIPS Act funding.
"As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American made,” said Intel CEO Lip-Bu Tan, in the press release. “President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security."
An Associated Press report says that Trump told members of the press during the day on Friday, ahead of the market closing. He said that the deal is a result of his time with Intel's chief executive, whom the president had initially called on to resign due to ties to Chinese chipmakers.
"As more companies look to invest in America, this administration remains committed to reinforcing our country’s dominance in artificial intelligence while strengthening our national security," Commerce Secretary Howard Lutnick said in the release. (Following news reports but ahead of an official release, Commerce Secretary Howard Lutnick simply tweeted it out.)
BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies. This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge. Thanks to Intel… pic.twitter.com/AYMuX14RgiAugust 22, 2025
The United States will buy 433.3 million shares of Intel common stock at $20.47 per share, a discount to today's market price. INTC opened at $23.65 on Friday and ended the trading day up 5.53% at $24.80.
But the government won't have a seat on the board and has an agreement to vote with the board on matters requiring its approval, "with limited exceptions."
The deal has been teased out all week, with Commerce Secretary Howard Lutnick going on CNBC to discuss the possibility of CHIPS Act grants converted into equity. Under President Joe Biden's administration, Intel was promised $10.9 billion in grants for meeting certain goals, including hitting goals on advanced nodes and building out new fabs, including one in Ohio. It sounds like those goalposts have been eliminated, as claw-back and profit-sharing provisions attached to the money dipsersed from the CHIPS Act are being retroactively removed.
But the White House reportedly won't look for TSMC and Micron to turn their grants into equity Stakes. A Wall Street Journal report earlier today, citing an unnamed government official, said that the Trump administration isn't looking for equity in companies that are upping their domestic investments.
Earlier this week, SoftBank agreed to buy $2 billion in Intel stock at $23 per share, infusing the chipmaker with much-needed cash.
Update August 22, 5:09 p.m. ET: Updated with confirmation of the news, including terms of the deal between Intel and the government.
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