The Trump administration is currently negotiating a deal that could give the U.S. government up to a 10% ownership stake in Intel. The move would involve converting grant money from the 2022 Chips and Science Act into company shares.
If completed, this would be one of the most significant federal interventions in the technology sector since the financial bailouts of 2008.
Intel’s Current Challenges
Intel recently reported a quarterly loss of $2.9 billion, compared to a $1.61 billion loss during the same period last year. Despite a 10% annual rise in its stock price, Intel’s performance has lagged far behind competitors like Nvidia, which has seen growth of over 36% during the same time.
Under CEO Lip-Bu Tan, the company has announced a 15% workforce reduction and paused construction at several new semiconductor factories. President Trump has called for Tan’s immediate resignation, citing concerns about his business ties with Chinese firms.
Strategic Importance
The U.S. government’s interest in Intel reflects growing concern about competition with China in artificial intelligence and advanced semiconductor manufacturing. A government stake of up to 10% would make Washington one of Intel’s largest shareholders.
U.S. Government Acquires 10% Stake in Intel
President Donald J. Trump announced that the United States has officially taken ownership of 10% of Intel. The U.S. government has agreed to invest $8.9 billion in Intel by purchasing 433.3 million new shares at $20.47 each, giving it a 9.9% stake in the company. As part of the deal, the government will also receive a five-year warrant to buy an additional 5% of Intel’s common shares at $20 per share, which can be exercised if Intel’s ownership in its foundry business drops below 51%.
Trump Defends Intel Deal
Update: August 25, 2025
Donald Trump said he paid “zero” for Intel, now worth around $11 billion, and argued that the entire gain benefits the U.S. He questioned why critics are unhappy, adding that he would continue making such deals for the country.
Intel Flags Risks from Trump Administration Stake
Update: August 25, 2025
Intel Corp. has warned in an SEC filing that the Trump administration’s 10% ownership in the company could create major business risks. These include possible loss of sales and negative reactions from foreign governments, partners, and employees. The filing also mentioned that the government’s stake could increase to 15% if Intel doesn’t meet certain manufacturing targets. While this move aims to strengthen domestic semiconductor supply chains, Intel raised concerns about potential operational and reputational challenges. CEO Lip-Bu Tan has not yet commented publicly.
