Washington: The United States government will acquire a 10 percent stake in Intel, marking an unprecedented intervention in the semiconductor sector aimed at restoring the country’s leadership in advanced chip production.
Commerce Secretary Howard Lutnick confirmed the agreement on Friday, describing it as a “historic investment” that will strengthen the US economy and safeguard its technological edge. He shared the announcement on X alongside a photograph with Intel Chief Executive Lip-Bu Tan.
President Donald Trump disclosed the deal earlier in the day during remarks in the Oval Office, calling it a great deal for them. Shares of Intel jumped more than 5 percent in New York trading following the news.
— Rapid Response 47 (@RapidResponse47) August 22, 2025
Intel said the federal government will invest $8.9 billion in its common stock, with the funds drawn from previously approved but unpaid grants under the CHIPS and Science Act. The legislation, passed during President Joe Biden’s administration, was designed to reshore semiconductor manufacturing and reduce reliance on overseas supply chains.
“As the only semiconductor company that conducts leading-edge logic research and manufacturing in the United States, Intel is deeply committed to ensuring that the world’s most advanced technologies are American-made,” Mr. Tan said in a statement.
The deal comes as Intel works to regain ground against Nvidia, whose dominance in artificial intelligence chips has propelled its market value above $4 trillion. Intel, once a symbol of Silicon Valley innovation, has struggled to expand production capacity and has seen its market capitalization hover around $100 billion.
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/AYMuX14Rgi
— Howard Lutnick (@howardlutnick) August 22, 2025
The agreement follows weeks of friction between the White House and Intel’s leadership. Trump recently called for Mr. Tan’s resignation, accusing him of ties to Chinese firms linked to Beijing’s military. Senator Tom Cotton also raised concerns in a letter to Intel’s board, questioning whether the company could responsibly manage taxpayer funds.
Mr. Tan, a US citizen born in Malaysia and raised in Singapore, dismissed the allegations as misinformation in a message to employees, saying he has always adhered to the highest ethical standards. He later met Trump at the White House amid the controversy.
Just met with President Trump to announce a historic agreement: the U.S. government is investing $8.9B in @Intel to boost American semiconductor leadership.
I’m excited about the work ahead to ensure the most advanced silicon technology and computing products of the future are… pic.twitter.com/8PUcJyiNJu
— Lip-Bu Tan (@LipBuTan1) August 22, 2025
During the 2008 financial crisis, Washington took control of General Motors to avert bankruptcy, later exiting the stake at a loss of about $10 billion. More recently, the Trump administration acquired a position in MP Materials, a Nevada company producing rare earth metals, using Cold War-era legal provisions.
The Intel deal underscores Washington’s escalating efforts to protect a sector seen as central to both economic prosperity and national security. It follows new rules requiring Nvidia and AMD to remit a portion of revenues from AI chip sales to China.
