President Donald Trump said the U.S. semiconductor industry had been weakened over the years as chip manufacturing moved to places like Taiwan. He argued that America continued designing the world’s most advanced technology but was no longer building enough of it at home.
Trump said his administration decided to support Intel because the country needed a strong domestic chip industry. According to him, major technology companies including Nvidia, Apple and Elon Musk’s TerraFab project agreed to work with Intel on advanced chip development and manufacturing in the United States.
On August 22, 2025, Intel announced an agreement with the Trump Administration aimed at expanding American technology and manufacturing leadership. Under the deal, the U.S. government agreed to invest $8.9 billion in Intel common stock.
The investment was funded using $5.7 billion in unpaid grants previously awarded under the CHIPS and Science Act and $3.2 billion from the Secure Enclave program. This was in addition to the $2.2 billion in CHIPS grants Intel had already received, bringing total government support to $11.1 billion.
As part of the agreement, the U.S. government purchased 433.3 million newly issued Intel shares at $20.47 per share, giving taxpayers a 9.9% ownership stake in the company. Intel also reaffirmed its commitment to supplying trusted and secure semiconductor technology to the U.S. Department of Defense.
Trump said Intel was worth about $100 billion when the government made its investment. He claimed the company’s value later rose above $600 billion, increasing the value of the government’s stake to more than $60 billion. Trump pointed to this gain as an example of his administration creating value for American taxpayers.
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